New Zealand's a2 Milk NZX:ATM said on Tuesday factors affecting the availability of its China-label infant milk formula (IMF) had been substantially resolved, but caused annual sales of the product to fall around 14%.
The dairy giant in April flagged that in-market supply of its key product had been hit by low inventory levels, strong demand and higher freight costs due to the conflict in the Middle East.
A2 Milk said its other product categories, including English-label IMF, have performed strongly, with sales significantly up compared with the last financial year.
The Auckland-based company said that it now expects net profit after tax for fiscal 2026 to be slightly higher than last year's NZ$202.9 million ($115.63 million), compared with its earlier outlook of similar or lower earnings.
The company also expects annual revenue of NZ$1.97 billion, up 12% from a year earlier, compared with a previous forecast of low- to mid-double-digit revenue growth.
($1 = 1.7547 New Zealand dollars)