Citi trims A2 Milk PT on weaker NZD, but sees earnings risk skewing to upside

A2 Milk

11/01/2026 22:45

** Citi analysts trim their FY26 net profit after tax forecast for New Zealand's A2 Milk ATM.NZ by 2% due to a weaker New Zealand dollar

** Accordingly, brokerage cuts PT minimally to NZ$10.40 from NZ$10.45

** Ahead of February HY results, Citi forecasts revenue of NZ$949 million ($543.68 million) ex-Mataura Valley Milk, below VA consensus of NZ$969 million, but up 6.3% on pcp

** Sees HY EBITDA of NZ$144 million

** Brokerage sees earnings risk is tilted to upside, though A2 may invest more in marketing for Genesis, Kids Advance and Vietnam

** Market checks show stable English label pricing with new Genesis product outperforming, while China label formula shows promising sell-through, Citi says

** Dairy firm's stock surged 71.1% in 2025, and is down 0.4% YTD

($1 = 1.7455 New Zealand dollars)

 (Reporting by Shruti Agarwal in Bengaluru; editing by Diane Craft)

 ((Shruti.Agarwal@thomsonreuters.com))