a2 Milk Company to Expand China-Label IMF Portfolio with Yashili New Zealand Acquisition

According to the a2 Milk Company's (a2MC) FY2025 annual report, the company has entered into an agreement to acquire 100% of the shares in Yashili New Zealand Dairy Co., Ltd. from Yashili International Group (a subsidiary of China Mengniu Dairy group). Yashili New Zealand’s Pokeno facility has registered two China-label infant milk formula (IMF) series with the China State Administration for Market Regulation (SAMR). Through this acquisition, a2MC expects to expand its China-label IMF portfolio, strengthen control over manufacturing and supply, and thereby secure greater market access to China's IMF market. The total expected consideration for the acquisition is $282 million.

The transaction has received approval from New Zealand Overseas Investment Office and is expected to close on September 1, 2025. Following completion, a2MC will promptly initiate the amendment application process with the China SAMR for the two existing China-label IMF series, which is expected to take up to 12 months. The company also anticipates pursuing registration of a potential third China-label IMF series, a process that could take several years.

It is also noteworthy that a2MC, in partnership with China Animal Husbandry Group, has announced to sell its stake in Mataura Valley Milk Limited to Open Country Dairy Limited, in a strategic move to optimize asset footprint and capacity utilization.

In FY 2025, a2MC reported sales revenue of NZ$1,902.0 million, an increase of 13.5% YoY, and net profit after tax rose by 21.1% to NZ$202.9 million. As the company’s largest business region, the China & Other Asia segment’s revenue grew by 13.9% to NZ$1,302.0 million, driven primarily by IMF sales growth. Within this segment, China-label IMF sales increased by 3.3% to NZ$632.5 million. English-label IMF surged by 24.9% to NZ$559.1 million supported by strong CBEC and O2O channel growth. Third-party data indicates that a2MC has secured a top-four brand position in China's IMF market.