The a2 Milk Company (NZE:ATM, ASX:A2M) said a lower share of China-labelled infant milk formula sales, one-off supply chain costs related to fourth-quarter supply chain disruption, among other factors, contributed to a gross margin decline of 3.4 percentage points to 47.7% in fiscal 2026, according to a Monday Australia and New Zealand bourse filing.
The company said the planned a2 Platinum transition from Synlait in the first half of fiscal 2027 is expected to significantly increase production levels at a2 Pōkeno and improve financial results.
A2 Milk's New Zealand shares fell 6% in recent Monday trade, while its Australian shares fell 5%.