The a2 Milk Company Limited provided earnings guidance for the first half of 2023 and fiscal year 2023. 1H23 growth (on 1H22) is expected to be significantly higher than 2H23 growth (on 2H22). With the marketing plan weighted to 1H23, the Company expects a slightly higher EBITDA margin in 2H23 versus 1H23.

The Company is expecting high single digit revenue growth in FY23. FY23 gross margin percentage is expected to be broadly in line with FY22, with cost of goods sold headwinds related to increasing milk, ingredient and packaging costs offset by price increases, mix benefits and cost mitigation initiatives. Overall, the Company is expecting EBITDA growth in FY23 and a modest improvement in EBITDA margin (% of sales).