FY24 Results and Annual Report

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)

Results for announcement to the market
Name of issuer The a2 Milk Company Limited
Reporting Period 12 months to 30 June 2024
Previous Reporting Period 12 months to 30 June 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$ 1,675,451 5.2%
Total Revenue
$ 1,675,451 5.2%
Net profit/(loss) from
continuing operations
$ 167,577 7.7%
Total net profit/(loss)
$ 167,577 7.7%
Interim/Final Dividend
Amount per Quoted Equity
Security
The Company does not propose to pay a dividend for the year
ended 30 June 2024
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date No applicable

Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
30 June 2024
$ 1.54
30 June 2023
$1.40
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For further information refer to the attached:
FY24 Annual Report
FY24 Results announcement / media release
FY24 Results commentary and FY24 Outlook
FY24 Results Presentation

Authority for this announcement
Name of person authorised
to make this announcement
Jaron McVicar
Contact person for this
announcement
Jaron McVicar
Contact phone number +61 2 9697 7000
Contact email address Jaron.McVicar@a2milk.com
Date of release through MAP 19 August 2024

Audited financial statements accompany this announcement.

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NZX Code: ATM
ASX Code: A2M


19 August 2024
NZX/ASX Market Release

FY24 Results media release
The a2 Milk Company (“the Company”, “a2MC”) announces a positive FY24
1
result driven by strong execution of its growth strategy
notwithstanding challenging market conditions. Key highlights:
1. Delivered a positive full year result with strong revenue, EBITDA
2
and EPS growth
2. Became a top-5 China IMF
3
brand growing total IMF sales despite a double-digit decline in China market value
3. Achieved record China label IMF market share and strong sales growth in a year of market-wide product transition
4. Stabilised English label IMF sales with growth in 2H24 following several periods of decline
5. Resolved Synlait arbitration disputes subject to Synlait completing its equity raise and refinancing
Financial results and outlook
4,5

• Revenue growth of 5.2% to $1,675.5 million
- Regional revenue: China & Other Asia segment up 14.1%, ANZ segment down 14.6% due to a change in English label
IMF distribution strategy, USA segment up 8.2% and MVM external sales down 11.0%
- Category revenue: Total IMF up 4.6% with China label up 9.5% and English label down 0.3%
6
, liquid milk in ANZ and
USA up 3.3% and 7.4% respectively, other nutritionals
7
up 36.7%
• EBITDA up 6.9% to $234.3 million with an EBITDA margin of 14.0% (up 0.2ppts)
• Net profit after tax (NPAT) attributable to owners of the Company up 7.7% to $167.6 million
8

• Basic earnings per share (EPS) up 9.2% to 23.2 cents
• Closing net cash
9
of $968.9 million up $211.7 million on June 2023 with operational cash conversion of 125.7%
10

• FY25 guidance for revenue growth of mid-single digit percent and EBITDA margin (% of revenue) to be broadly similar to
FY24 (see FY25 Outlook in the “FY24 Results Commentary and Outlook” announcement)
Operational highlights
• Grew total IMF sales by 4.6% despite a challenging China IMF market that was down 10.7% in value. Conditions in the
China IMF market remain difficult, impacted by the cumulative decline in China newborns over the past few years,
increased competitive intensity, market-wide transition to new GB standard products and macroeconomic conditions
• Achieved top-5 brand position in the overall China IMF market supported by increased marketing investment and
improved brand health metrics, including unprompted awareness, top of mind brand awareness and brand used most
often
• Maintained positive IMF key business health indicators, including market pricing and higher share of early-stage product
sales with Stages 1 and 2 being a2MC’s fastest growing stages
• Delivered China label IMF sales growth of 9.5% and record market share in China label IMF channels, with 3.5% market
value share in mother and baby stores (MBS) and 3.9% market value share in domestic online (DOL) retail channels on an
MAT basis

1
All references to full year (FY), halves (H) and quarters (Q) relate to the Company’s financial year, ending 30 June.
2
EBITDA is a non-GAAP measure and does not have a standardised meaning prescribed by GAAP. However, the Company believes that in combination with
GAAP measures, it assists in providing investors with a comprehensive understanding of the underlying operational performance of the business. A
reconciliation of EBITDA to net profit after tax is shown in the Company’s FY24 Investor Presentation (slide 59) dated 19 August 2024.
3
Infant milk formula.
4
All figures are in New Zealand Dollars (NZ$), unless otherwise stated.
5
All comparisons are with the 12 months ended 30 June 2023 (FY23), unless otherwise stated.
6
English and other labels IMF included in China & Other Asia, ANZ and USA segments.
7
Other nutritionals consists of powdered milk products (plain and fortified), and liquid milk products (plain and fortified) exported to China & Other Asia.
8
Excludes non-controlling interest in Mataura Valley Milk (MVM), a loss of $13.7 million.
9
Including term deposits and borrowings, excluding subordinated non-current shareholder loans.
10
Operating cash conversion defined as net cash flow from operating activities before interest and tax divided by EBITDA.

2
• Launched upgraded China label IMF product, a2 至初®, supported by impactful marketing campaigns and enhanced
product formulation and packaging that has been well received by the trade and consumers, resulting in distribution gains
and minimal stock write-offs incurred during the transition
• Stabilised English label IMF sales with growth in 2H24 and increased overall market share to 20.2% compared to 19.0% in
FY23, with strong growth in cross-border e-commerce (CBEC) channels driven by emerging channels including
Douyin/TikTok and Red
• Continued to optimise English label route-to-market through drop-shipping from Tier 1 distributors direct to consumers,
and developed new strategic distribution partnership with Yuou, a market leader in the O2O channel
• Progressed the development of an expanded portfolio of IMF products, launching a2 Gentle Gold™ in 2H24 with an
additional range to follow in FY25
• Accelerated growth of other nutritional products, largely sourced from MVM, with sales up 36.7%. Launched two new
fortified adults and seniors milk powder products, a2™ Immune and a2™ Move, in 2H24
• Continued to drive a2 Milk
®
Lactose Free share growth in Australia, supported by a brand relaunch and progressed a
major upgrade of the Kyabram milk processing site in Victoria, due to complete in FY25
• Improved USA profitability significantly and commenced distribution of IMF with selected retailers in-store and online
under FDA Enforcement Discretion and progressed long-term IMF approval which is on-track for FY26 subject to FDA
approval
• Resolved Synlait arbitration disputes, including Synlait’s acceptance of the validity of a2MC’s notice of cancellation of
exclusivity, subject to Synlait completing its equity raise and the refinancing of its existing banking facilities. The Company
has agreed to support and subscribe for shares under Synlait’s equity raise on terms to be agreed
• Progressed the Company’s supply chain transformation by gaining access to a potential additional China label IMF
product registration slot with Synlait to be developed by December 2029 subject to SAMR approval. The Company
remains focused on securing further China label registrations and exploring other investment opportunities, mainly in
New Zealand and China
• Expanded English label IMF commercial supply chain partnerships with Yashili NZ (subsidiary of Mengniu) and New
Zealand New Milk (subsidiary of Lactalis), produced new English label IMF and fortified milk powders in partnership with
MVM, and continued to invest significantly in upgrading supply chain capability
• Progressed execution of sustainability strategy including completion of an on-farm methane inhibitor feasibility study in
Australia and materially reducing Scope 1 and 2 greenhouse gas emissions resulting from the commissioning of a high-
pressure electrode boiler at MVM powered by certified renewable energy
CEO commentary
The a2 Milk Company’s Managing Director and CEO, David Bortolussi said:
• “We continued to execute well against our growth strategy, primarily focused on the China market, delivering positive
FY24 results with strong revenue and EBITDA growth.”
• “The a2™ brand continued to increase market share in the China IMF market and is now a top-5 brand. We grew IMF
sales despite the China IMF market being down double-digits.”
• “A major highlight for the year was the successful launch of our upgraded China label IMF product. We were pleased with
the market’s reaction to our new product and our sales growth of 9.5% on last year.”
• “After several years of COVID-19 related disruption and market decline, we are pleased that our English label IMF sales
stabilised in the first half and grew 6.9% in the second half.”
• “Beyond IMF, we are investing in growth in liquid milk and other nutritional products for kids, adults and seniors and
pursuing growth in new markets. We launched new products in FY24 with more to come next year.”
• “We made significant progress delivering against our sustainability strategy including reducing our Scope 1 and 2
greenhouse gas emissions by 45% and completing a methane inhibitor feasibility study.”

3

Authorised for release by the Board of Directors
David Bortolussi
Managing Director and Chief Executive Officer
The a2 Milk Company Limited

For further information, please contact:

Investors / Analysts
David Akers, Group Head of Investor Relations
M +61 412 944 577
david.akers@a2milk.com




Media – New Zealand
Barry Akers
M +64 21 571 234
barryakers9@gmail.com
Media – Other markets
Rick Willis
M +61 411 839 344
rick@networkfour.com.au

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NZX Code: ATM
ASX Code: A2M


19 August 2024
NZX/ASX Market Release

FY24 Results Commentary and Outlook

Group financial performance
1
,
2,3
The a2 Milk Company (“the Company”, “a2MC”) announces its financial results for the 12 months ended 30 June 2024. Key results
are as follows:

FY24 ($m) FY23 ($m) Variance (%)
Revenue 1,675.5 1,592.9 5.2%
EBITDA
4
234.3 219.3 6.9%
Net profit after tax
- Attributable to owners of the Company
167.6 155.6 7.7%
Basic earnings per share (cents)
23.2 21.2 9.2%
Net cash
5
968.9 757.2 28.0%

Revenue was up 5.2% to $1,675.5 million, driven by continued growth in the China & Other Asia segment up 14.1%, partially offset
by a 14.6% decrease in the ANZ segment mainly due to a change in distribution strategy (with English label infant milk formula
(IMF) sales shifting to the China & Other Asia segment). USA segment revenue increased 8.2% and MVM decreased 11.0%.
Total IMF sales grew 4.6% with China label up 9.5%. English label IMF sales were down 0.3%, growing 6.9% in 2H24 versus 2H23.
Liquid milk sales grew 4.8%, with ANZ up 3.3% and USA up 7.4%. Other nutritional sales, which consist of non-IMF powdered milk
products and China & Other Asia liquid milk products, grew 36.7%, and ingredients (MVM) decreased 11.0%.
Gross margin percentage
6
of 45.8% was 0.6ppts lower than FY23, primarily due to higher input costs associated with the upgraded
China label product, a2 至初®, and the impact of MVM’s coal-boiler accelerated depreciation, partially offset by margin
improvement initiatives. Excluding the MVM boiler depreciation impact of $10 million, gross margin as a percentage of net sales
revenue was broadly similar to prior year.
Distribution costs were slightly lower, with higher costs associated with China label IMF product transition offset by an
improvement in USA freight rates and increased focus on customer cost to serve.
Marketing investment increased 7.6% to $280.1 million (16.7% of net sales revenue) and supported the launch and transition of
the upgraded GB registered China label IMF product, a2 至初®. Administrative and other expenses (SG&A) increased 3.3% to
$236.2 million primarily due to capability and other investment, particularly in China and supply chain. This was partially offset by
lower LTI expenses and reduced FX hedge losses. SG&A as a percentage of net sales revenue reduced from 14.4% in FY23 to 14.1%
in FY24.
EBITDA increased 6.9% to $234.3 million, with EBITDA margin increasing to 14.0% (up 0.2ppts). Depreciation and amortisation
increased to $32.2 million due to the accelerated depreciation of the MVM coal-fired boiler following the successful
commissioning of a high-pressure electrode boiler. Net finance income increased to $35.9 million reflecting higher cash balances
and increased market interest rates. NPAT including amounts attributable to non-controlling interests was $153.9 million, an
increase of 6.2%. Amounts attributable to non-controlling interests, a loss of $13.7 million, represent China Animal Husbandry
Group’s 25% interest in MVM. Excluding this loss, NPAT attributable to owners of the Company was $167.6 million, up 7.7%.

1
All references to full year (FY), halves (H) and quarters (Q) relate to the Company’s financial year, ending 30 June.
2
All figures are in New Zealand Dollars (NZ$), unless otherwise stated.
3
All comparisons are with the 12 months ended 30 June 2023 (FY23), unless otherwise stated.
4
EBITDA is a non-GAAP measure and does not have a standardised meaning prescribed by GAAP. However, the Company believes that in combination with GAAP
measures, it assists in providing investors with a comprehensive understanding of the underlying operational performance of the business. A reconciliation of
EBITDA to net profit after tax is shown in the Company’s FY24 Investor Presentation (slide 59) dated 19 August 2024.
5
Including term deposits and borrowings, excluding subordinated non-current shareholder loans.
6
Gross margin percentage is calculated as sales less cost of goods sold, divided by sales.

2
The balance sheet further strengthened during the year with closing net cash of $968.9 million, up $211.7 million on prior year.
Inventory of $179.6 million was down 7.1% on prior year, largely due to a reduction in English label inventory levels driven by late
inventory receipts in the prior year and lower China label and English label early stage inventory due to 2H24 sales performance.
Excluding interest and tax, operating cash inflow was $294.5 million, representing operational cash conversion of 125.7%
7
, up
67.5ppts on prior year. FY23 was impacted by higher payments due to catch-up payments delayed from FY22 into 1H23 due to
COVID-19 related disruptions (outside of the Company’s control) and the earlier timing of payments for China label IMF products
impacted by the GB registration transition.
China market update
8

The number of newborns in China declined 5.6% in CY23 to 9.0 million
9
reflecting an improvement in trajectory over the past
several years with a positive outlook for CY24, but with longer term decline expected due to socio-demographic trends.
The China IMF market declined 8.6% in volume and 10.7% in value in FY24. The decline in Key&A cities exceeded BCD cities, with
Key&A market value decreasing 11.9% and BCD market value decreasing 9.4%. The market decline reflected the cumulative impact
of fewer newborns, increased competitive intensity and challenging macroeconomic conditions.
China label IMF market value declined 12.5% with the mother and baby stores (MBS) channel down 16.1%
10
and domestic online
(DOL) channel down 12.2%
11
. Across China label channels, there was significant pricing pressure impacted by the combination of
volume pressure resulting from fewer newborns, the market-wide transition to new GB registered products with clearance of old
GB registered products, and challenging macroeconomic conditions.
Following several years of significant declines, the English label IMF market outperformed the overall market with value up 3.8%. A
proportion of consumers switched from China label product to English label product, and the English label market recovered value
share to 17.2% of the overall China IMF market, up from 15.3% in FY23. English label channel mix continued to shift – the Daigou
channel experienced a further significant decline of 14.3%, while the offline-to-online (O2O) channel grew by 5.5% and cross-
border e-commerce (CBEC) experienced significant growth up 11.0%
12
. a2MC’s distribution strategy is focused on continuing to
expand share in the growing CBEC and O2O channels which account for approximately 69% of the English label market, including
emerging channels such as Douyin/TikTok.
Market dynamics and the market-wide GB registration transition have led to increasing brand concentration within the China IMF
market with all top-5 brands gaining market share and now representing over 54% of market value.
In the context of challenging macroeconomic and IMF market conditions, a2MC’s growth in FY24 in China label IMF of 9.5% and
total IMF of 4.6% reflected a strong performance overall.
Regional and product performance
1. China & Other Asia
Growth in the China & Other Asia segment was driven by continued strong execution of the Company’s growth strategy and the
well-executed China label IMF product launch and transition. Revenue of $1,143.1 million was up 14.1%, with EBITDA of $290.1
million up 14.2%. The combination of increased investment, high impact marketing campaigns and strong sales execution
underpinned further improvements in key brand health metrics and market share during the year. This resulted in a2MC becoming
a top-5 IMF brand in the overall China IMF market taking into account its combined share in both the China and English label
markets. New highs in China brand health metrics were achieved with total a2MC IMF prompted brand awareness increasing from
63% to 66%, unprompted brand awareness increasing from 23% to 25%, top of mind brand awareness increasing from 9% to 12%,
and trial and brand equity metrics increasing with the target audience
13
.
China & Other Asia: China label IMF
China label IMF sales increased to $612.3 million, up 9.5%. The continued strong performance of China label IMF was underpinned
by the careful execution and transition to the upgraded China label IMF product, a2 至初®. This was achieved despite the declining
market and continued volatility. Consumer demand for a2 至初® remained strong with market value share improving both in-
store and online, supported by the upgraded formulation and packaging.
To support the launch and transition of the upgraded a2 至初® product, marketing investment was increased with integrated
campaigns across all sales channels and media including high impact advertising reinforced at point of sale. This was
complemented by bespoke activities for key MBS accounts and impactful brand days with key DOL platforms.

7
Operating cash conversion defined as net cash flow from operating activities before interest and tax divided by EBITDA.
8
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities); unless otherwise stated. Kantar had a major round of
data updates in 2H24 which resulted in the restatement of historical data.
9
China National Bureau of Statistics.
10
Nielsen MBS retail measurement service: mother and baby stores only retail sales (by value). FY24 versus FY23.
11
Smart Path China IMF online market tracking: for DOL only retail sales (by value). FY24 versus FY23.
12
Smart Path China IMF online market tracking: for CBEC only retail sales (by value). FY24 versus FY23.
13
a2MC internal data based on the Company’s brand health tracking undertaken by Ipsos. Average brand health metrics for each financial year based on 3 surveys
in FY21 and FY22, 2 surveys in FY23, and 3 surveys in FY24. Sample skews to a2MC target consumers (ie higher income earners based in Provinces / cities that are
the focus of sales and marketing activities).

3
MBS weighted distribution increased modestly as well as same store sales, driving share gains. Offline distribution increased to
over 29,000 stores, with the growth largely occurring in 2H24 from increased expansion in BCD cities
14
. A significant number of
store closures occurred in the market during the period reflecting challenging retail and IMF category conditions. Building share in
national key accounts, increasing distribution in regional key accounts, targeting greater penetration of BCD cities, and testing new
strategies for accelerated growth in prioritised provinces are key priorities.
Retail market value for the MBS channel was down 16.1%
15
, reflecting the cumulative impact of fewer newborns, store closures
and disruption driven by the market wide transition to new GB products and challenging macroeconomic conditions. a2MC’s
market value share in MBS increased to 3.5% compared with 3.3% at the end of June 2023.
Online growth for China label IMF was another highlight. While retail market value for the DOL channel was down 12.2%
16
, a2MC’s
market value share in DOL increased to 3.9% compared with 3.3% in FY23. a2MC’s share of early-stage product sales continued to
increase as more users shift to online channels.
China & Other Asia: English label IMF
17

The China & Other Asia segment continued to benefit from a2MC’s strategic decision to focus on CBEC and O2O channels,
investment in execution capability, and leading distributor partnerships. English label IMF sales in the China & Other Asia segment
of $447.8 million were up 16.0%.
The Company is focused on CBEC growth and building digital marketing and e-commerce capability to further improve its
execution which is having an impact, particularly on new user recruitment. While reported CBEC market share decreased from
22.6% to 20.5%
18
, there was strong growth in retail sales of a2MC English label IMF through emerging CBEC channels such as
Douyin/TikTok, which are not included in a2MC reported Smart Path market share data. Similar to DOL, a2MC’s share of early-
stage product sales increased significantly in CBEC.
Another key focus for English label distribution has been the development of the O2O channel. a2MC has further improved its
distribution footprint and share in O2O key accounts, ‘long-tail’ O2O and ‘POP’ accounts, continuing its partnership with Yuou, one
of the leading O2O distributors in China.
The distribution model was further refined in FY24 including the increased utilisation of drop-shipping fulfilment models via Tier-1
distributors to service O2O stores and C2C networks. Trade inventory positions were reduced and service and fulfilment time for
consumers was improved. In addition, shipments of a2 Platinum® IMF to Vietnam commenced in 2H24.
Overall, the Company’s total English label market share in China increased to 20.2%
19
.
China & Other Asia: Other nutritional products
Sales of other nutritional products in the China & Other Asia segment were up 46.4% to $82.9 million, benefitting from new
products launched in FY23 and FY24, a new organisational structure put in place to focus on this important opportunity and
improved execution. The strong performance in these categories, particularly in milk powder and UHT, was also supported by
increased marketing investment through brand building campaigns, leveraging both the a2 brand’s online and offline execution
success.
2. Australia and New Zealand
The Australia and New Zealand (ANZ) segment result was driven by lower IMF sales to the Daigou channel due to a change in
a2MC’s EL IMF distribution strategy and a relatively strong prior corresponding period associated with the a2 Platinum® refresh.
Overall, ANZ revenue of $317.3 million was down 14.6%, and EBITDA of $63.0 million was down 32.6%.
Australia and New Zealand: English label IMF and other nutritionals products
The Daigou channel market value was down 14.3% in FY24
20
. Whilst IMF reseller and retail sales decreased 39.4% to $98.5 million
versus FY23, both sales and channel declines have stabilised more recently during the year. While English label IMF focus remains
on the CBEC and O2O channels, support for the Daigou channel continued through consumer marketing campaigns and further
enhanced reseller trade support programmes.
O2O and Daigou channel combined market value was down 10.0% with growth in the O2O channel partially offsetting Daigou
channel decline. a2MC’s market share in the O2O and Daigou channel slightly decreased to 19.7% in FY24 versus 20.3% in FY23
21
.
To broaden its English label IMF portfolio, the Company progressed the development of English label IMF products with a new
commercial IMF supply partner (Yashili NZ, a subsidiary of Mengniu). a2 Gentle Gold™, which is positioned below a2 Platinum®,
was launched late in 2H24 in Australian retail channels and selected channels in China. a2MC is expecting to launch an additional
English label product to be positioned above a2 Platinum® in FY25.

14
a2MC internal data tracking of stores with active sales in the past 6 months.
15
Nielsen MBS retail measurement service: mother and baby stores only retail sales (by value). FY24 versus FY23. Nielsen had a round of panel enhancement in
Jan-24 which led to the restatement of historical data.
16
Smart Path China IMF online market tracking: for DOL only retail sales (by value). FY24 versus FY23.
17
English label IMF includes sales via CBEC, Korea, Vietnam and Hong Kong Resellers.
18
Smart Path China IMF online market tracking: for CBEC only retail sales (by value). FY24 versus FY23.
19
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities). 12-month rolling share for FY24.
20
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities) 12-month rolling share for FY24.
21
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities). 12-month rolling share. FY24 versus FY23.

4
Revenue for other nutritional products was up 13.5% to $26.8 million with the portfolio continuing to grow during the year, with
the launch of two new fortified products (a2™ Immune and a2™ Move) during the second half.
Australia and New Zealand: Liquid milk
Australian liquid milk sales were up 3.3% to $190.2 million led by the contribution from a2 Milk
®
Lactose Free, partly offset by
lower sales from the core milk range. This reflects a challenging consumer environment impacted by cost-of-living pressures, with
a market shift from branded milk products to private label in the category overall which stabilised during 4Q24. Despite the
challenging market conditions, a2MC’s market value share of 11.5% grew 0.2ppts versus 1H24, supported by a2 Milk® Lactose Free
which grew to 13.5% share
22
of the lactose free category. a2 Milk® (including a2 Milk® Lactose Free) is now the number one dairy
milk brand nationally
23
. Growth in FY24 was supported by dedicated marketing activations to drive awareness and purchase.
An upgrade of the Smeaton Grange facility was completed and the upgrade of the Kyabram milk processing facility with Kyvalley
Dairy Group is on track for completion during FY25.
3. USA
USA grew revenue by 8.2% to $113.7 million and significantly improved its landed margin (gross margin less distribution costs)
resulting in an improved EBITDA loss of $15.5 million (FY23: $23.3 million loss).
The revenue increase was mainly driven by a reduction in promotional activity and supported by growth of the a2 Milk® Grassfed
product. a2MC’s market value share in the premium milk category for the Grocery channel was slightly down at 2.2% (FY23:
2.3%)
24
.
a2MC commenced distribution of a2 Platinum® IMF during FY24 under the US Food and Drug Administration’s (FDA) short-term
Enforcement Discretion approval with selected retailers in-store and online including Amazon and Walmart. Sales recognised
during the year were not material, with a focus on establishing the supply chain and trialling different sales and marketing
approaches, whilst pursuing long-term FDA approval. a2MC’s New Infant Formula Notification is on track to be filed during 1Q25,
with long-term approval targeted to be achieved during FY26, subject to FDA approval.
The improved EBITDA loss was due to reduced promotional activity, improved input costs and distribution rates and reduced
SG&A costs, partly offset by higher costs incurred with respect to pursuing long-term FDA approval.
Accelerating the path to profitability in the USA remains a priority. Whilst USA losses have significantly reduced, given the likely
investment related to USA IMF, the timeframe to achieve profitability is now more likely to be by FY27, with the USA liquid milk
business expected to achieve breakeven contribution margin in FY26.
4. Mataura Valley Milk
During FY24, the Company continued to execute against its supply chain transformation strategy, including developing nutritional
manufacturing capability, increasing access to raw A1 protein free milk in Southland (including organic) and commencing the
production and sale of a2 Platinum® Stage 4 IMF base powder with a new commercial supply chain partner (New Zealand New
Milk, a subsidiary of Lactalis).
Revenue of $101.4 million
25
and an EBITDA loss of $20.5 million were recorded for the period. The improved EBITDA loss position
(FY23: $26.5 million) reflects an improved sales mix, with increased volume of higher-value products (including nutritional base
powder), plus a continued cost and productivity focus across the site. The improved loss profile in 2H24 largely reflects higher
nutritional and A1 protein free powder sales, plus the normal impact of the seasonal winter shutdown during the first half.
Accelerating MVM’s path to profitability is also a key priority. Growth in A1 protein free milk supply, nutritional product mix and
facility utilisation are key drivers of profitability. Whilst management is working on a range of initiatives to achieve breakeven by
FY26, at this stage it is more likely that profitability will be achieved by FY27.
Innovation and supply chain transformation
The Company advanced several initiatives to ramp-up innovation and transform its supply chain during the year. Significant
innovation milestones included the Company’s upgraded GB registered China label IMF product, a2 至初®, as well as the launch of
a new English label IMF product, a2 Gentle Gold
TM
, into Australian retail channels and selected China channels, organic milk
powder in a tub and new fortified milk powder products in 2H24 targeting adults and the growing seniors market. Alongside
product innovation, the Company continued to invest in innovation and product development capability to unlock future
opportunities.
The Company progressed its supply chain transformation strategy during FY24 through new commercial supply chain partnerships
with New Zealand New Milk (subsidiary of Lactalis) and Yashili NZ (subsidiary of Mengniu), and produced new A1 protein free
products in partnership with MVM, including nutritional base powders.


22
IRI Australian Grocery Weighted Scan, share of Dairy Milk market, MAT period.
23
IRI Australian Grocery Weighted Scan, dollar share, MAT to June 2024.
24
SPINS data for the Grocery channel only for the 52 weeks ending 30 June 2024 and 30 June 2023.
25
Revenue excluding intercompany sales.

5
As announced on 16 August 2024, the Company resolved the various disputes subject to arbitration with Synlait Milk Limited
(Synlait) subject to Synlait completing its equity raise and the refinancing of its existing banking facilities. The Company also agreed
to support and subscribe for shares under Synlait’s equity raise on terms to be agreed, to be set out in Synlait’s forthcoming notice
of meeting. The resolution of the disputes will remove any arbitration uncertainty and the cancellation of Synlait’s manufacturing
and supply exclusivity rights
26
from 1 January 2025 will provide additional flexibility to a2MC to further enable its supply chain
transformation strategy. The Company also expects to gain access to a potential additional China label registration slot at Synlait’s
Dunsandel facility to be developed by December 2029 subject to SAMR approval.
The Company is working on options to accelerate access to additional controlled China label IMF registrations to achieve greater
China market access and to develop its own manufacturing capability consistent with its growth strategy.
Capital management
The Board is conscious of the significant amount of net cash held on the balance sheet at year end. Consistent with the Company’s
capital allocation framework, priority is being given to transforming and de-risking a2MC’s supply chain to enable future growth
focused on investment in New Zealand and China. Once the Company’s supply chain transformation is further developed and
other investment opportunities are considered, to the extent there is a capital surplus to achieving a2MC’s priorities, the Board
will make a disciplined assessment of the potential to return capital to shareholders and the most appropriate option to do so.
Sustainability
Significant progress was made in executing against the Company’s sustainability goals with 100% of certified farms supplying raw
A1 protein free milk to have an upgraded animal welfare programme and a farm environmental plan in place. The Company
continued to invest in its a2
TM
Farm Sustainability Fund in New Zealand and Australia with high participation by farmer suppliers.
Regarding sustainable packaging, the Company continued to collaborate with industry groups and progressed against its roadmap.
However, more work is required to meet packaging targets which will be a focus in FY25.
From a climate perspective, the Company significantly reduced its Scope 1 and 2 GHG emissions by 45%
27
. This achievement was
heavily supported by the successful commissioning of a high-pressure electrode boiler at MVM, along with the full electrification
of the MVM site, powered by certified renewable energy
28
. The Company also made good progress against its target of net zero
Scope 3 GHG emissions by 2040 by completing a methane inhibitor feasibility study in Australia and investing in AgriZero
NZ
, a
partnership between the New Zealand Government and major agribusiness companies to reduce on-farm biogenic methane and
nitrous oxide emissions.
Medium-term ambition
In October 2021, as part of its refreshed growth strategy, a2MC defined its medium-term financial ambition (ie by FY26 or later) to
grow revenue from $1.2 billion in FY21 to approximately $2 billion and to target EBITDA margins in the ‘teens’.
The Company’s execution of its growth strategy has been in line with its expectations, and it is well positioned to achieve future
growth, despite the China IMF market having contracted significantly more than expected at the time it set its ambition.
The Company announced on 19 February 2024 as part of its FY24 Interim Results that whilst it remains possible for the Company
to achieve its medium-term revenue ambition of approximately $2 billion by FY26 or later, at this stage it is likely to be achieved
by FY27 or later. The Company continues to target EBITDA margins in the ‘teens’ with year-on-year improvement.
Since announcing its refreshed growth strategy in 2021, a2MC has gained significant share in the China IMF market and achieved
strong growth in Group revenue and EBITDA of 38.8% and 89.9% respectively
29
. a2MC has grown its China label IMF sales by
57.1%
30
and stabilised its English label IMF sales, which were up 4.4%
31
. The Company has increased its share of the total China
IMF market from 4.9% to 7.3%, becoming one of the most successful brands in China and in the top-5 overall
32
.
a2MC has significantly transformed its IMF channel mix, continuing to focus on CBEC and O2O channels and away from the Daigou
channel. As a result, the China label, CBEC and O2O channels represented approximately 90% of the Company’s IMF sales in FY24
compared to approximately 60% in FY21. The Company has also grown sales in the other nutritional products category by 86.1%
33

and its combined liquid milk business in ANZ and USA by 30.3%
34
.

26
In respect of Stages 1-3 of a2MC’s current IMF products (being a2 Platinum® and a2 至初®) for sale by a2MC in the markets of China, Australia and New Zealand.
27
Using market based calculation for Scope 2.
28
MVM purchases Meridian’s Certified Renewable Energy production values product to enable it to exclusively match the amount of electricity it uses on an annual
basis with an equivalent amount of electricity put into the national grid from one of Meridian’s hydro stations or wind farms (which have been independently
verified as producing 100% renewable electricity). Actual electricity received on location is from mixed sources.
29
a2MC Group sales and EBITDA FY21 versus FY24.
30
a2MC sales of China label FY21 versus FY24.
31
a2MC sales of English label FY21 versus FY24.
32
Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities). China and English labels combined. MAT to June 2021
versus MAT to June 2024.
33
a2MC sales of other nutritionals FY21 versus FY24. Other nutritionals consists of non-IMF powdered milk products and China & Other Asia liquid milk.
34
a2MC sales of liquid milk in ANZ and USA FY21 versus FY24.

6
Delivery of a2MC’s medium-term financial and non-financial ambition remains underpinned by the successful execution of its
strategy which is comprised of five key strategic priorities:
1. Investing in people and planet leadership – particularly in relation to its capability and sustainability objectives
2. Capturing the full potential in China IMF – including expansion into lower tier cities and online channels
3. Ramping-up product innovation – including portfolio expansion in English label IMF, China label IMF and other
nutritionals for kids, adults and seniors, as well as leveraging the portfolio into new markets
4. Transforming its supply chain – particularly accessing additional China label IMF registrations and developing its
nutritional manufacturing capability through MVM and other commercial and acquisition opportunities primarily in New
Zealand and China over time
5. Accelerating the path to profitability for the USA and MVM businesses
FY25 Outlook
China IMF market conditions remain challenging and the Company expects a further market value decline in FY25.
At this stage, the Company is expecting mid single-digit revenue growth in FY25 versus FY24, with growth affected by IMF supply
constraints which are expected to be resolved in 1H25.
FY25 gross margin (% of sales) is expected to be broadly similar to FY24, with 1H25 down (impacted by airfreight) and 2H25 up
compared to prior year.
An increase in brand investment is planned for FY25 with a similar reinvestment rate (% of sales), and Administrative & Other
expenses are expected to be similar to down compared to FY24 (% of sales).
The Company expects EBITDA margin (% of revenue) to be broadly similar to FY24, with 1H25 down and 2H25 up compared with
prior year.
Operational cash conversion is expected to be less than 100% impacted by the settlement of Synlait FY24 payments withheld in
accordance with contractual arrangements and a reduction in purchase order deposit payment terms going forward.
Capital expenditure is expected to be approximately $20 million.
Key risks
In addition to the challenges noted above and trading upsides and downsides, other risks include, but are not limited to,
challenging macroeconomic conditions, China IMF category dynamics and competitive intensity, further supply related risks, cross
border trade, foreign exchange movements, changes in interest rates, farmgate milk pricing and other commodity prices, and
changes in the regulatory environment. These challenges and risks could materially impact expected revenue and earnings
outcomes. For more information on key risks refer to the Risks and Opportunities section of the Annual Report.

Authorised for release by the Board of Directors

David Bortolussi
Managing Director and Chief Executive Officer
The a2 Milk Company Limited

For further information, please contact:

Investors / Analysts
David Akers
Group Head of Investor Relations
M +61 412 944 577
david.akers@a2milk.com



Media – New Zealand
Barry Akers
M +64 21 571 234
barryakers9@gmail.com
Media – Other markets
Rick Willis
M +61 411 839 344
rick@networkfour.com.au

---

2024
ANNUAL
REPORT
We pioneer the future of Dairy for good
The a2 Milk Company

1 Sales revenue reflects Net Sales Revenue and excludes Other Revenue.
2 Excludes liquid milk products (plain and fortified) exported to China and Other Asia markets.
3 Comprises powdered milk products (plain and fortified), and liquid milk products
(plain and fortified) exported to China and Other Asia markets.
4 Attributable to owners of the Company.
5 Earnings per share (basic).
The Company’s strong
execution of its growth
strategy is delivering
positive results
EBITDAN PAT
4
EPS
5
$m
$m
$m
$m
$m
$m
$m
$m
c
c
c
c
FY21FY21FY21FY22FY22FY22FY23FY23FY23FY24FY24FY24
Sales Revenue
1
Infant milk
formula (IMF)
Liquid milk
2
Ingredients Other
nutritionals
3

$1,205m
FY21FY22FY23FY24
$914m
$1,022m
$1,108m
$1,160m
$232m
$254m
$289m
$303m
$59m
$63m
$104m
$80m
$114m
$110m
$101m
$1,444m
$1,591m
$1,673m

Chair’s letter 2
CEO’s year in review 5
Building a sustainable growth business 14
Who we are 15
What we do 16
How we create value 18
Our growth strategy 20
Our reporting approach 23
People 24
Planet 34
Consumers 44
Shareholders 50
Risks and opportunities 54
Corporate governance 64
Directors 68
Executive Leadership Team 70
Remuneration 72
Financial statements 80
Company disclosures 141

CHAIR’S LETTER
PIP
GREENWOOD
I am pleased to report another year of strong performance
for The a2 Milk Company (a2MC). Despite category and
macroeconomic challenges in our key markets, we have
executed well against our plans.
2Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresCEO’s year in reviewChair’s letter

We have focussed on delivering against the objectives we shared
back in October 2021 when we refreshed our growth strategy, and
pleasingly are on track to achieve our financial and non-financial
ambitions.
FY24 was a significant year for the Company. Following re-
registration from China’s State Administration for Market
Regulation (SAMR) of our upgraded China label infant milk
formula (IMF) product in June 2023, the past year has required
meticulous planning and diligent execution to ensure our product
was launched and transitioned effectively into the market.
Given the positive signs we have seen including strong consumer
offtake and healthy metrics for product freshness and in-market
pricing, we are pleased that the transition has been successful.
Throughout this process we were well supported, and extend
our gratitude to SAMR, New Zealand’s Ministry for Primary
Industries, our strategic partners in China, China National
Agriculture Development Group Co., Ltd and China State Farm
Agribusiness, and our manufacturing partner, Synlait and its
major shareholder Bright Dairy. I also want to thank our a2MC
team who have dedicated so much time and care to deliver
this outcome.
We continue to be proud of our New Zealand origins and are
delighted that in China, our largest market, our consumers highly
value the A1 protein free proposition and our products’ New
Zealand provenance. Being the pioneer of A1 protein free helps us
differentiate our products in a competitive market. It is especially
pleasing that we have now achieved a top 5 position in the China
IMF market with our China and English label products combined.
Our liquid milk businesses in Australia and the USA also
progressed well in FY24 with innovation delivering positive
results and we continue to progress our application for long-term
US Food and Drug Administration approval to import IMF into
the USA.
Our strategy has also been to invest in people and planet
leadership and we are pleased to have made progress with this
again in FY24. We continued to invest in building capability,
particularly in China and in our supply chain. On sustainability,
we have made progress as well with the highlight for the year
being the commissioning of a high-pressure electrode boiler at
MVM. We also invested in AgriZero
NZ
, a world-first partnership
between the New Zealand Government and other industry
stakeholders, aimed at helping farmers reduce greenhouse gas
emissions, while maintaining profitability and productivity.
We have also been focussed on ramping up innovation and
transforming our supply chain. We introduced a new English
label IMF product this year and expanded our commercial supply
chain partnerships with New Zealand New Milk (a subsidiary of
Lactalis) and with Yashili New Zealand (a subsidiary of Mengniu).
We also produced IMF base powder and fortified milk powders
in partnership with Mataura Valley Milk (MVM), supported by
MVM’s minority shareholder China Animal Husbandry Group.
This in turn has also contributed to improved profitability at
MVM which remains a focus.
The Company recently announced that it had resolved its
arbitration disputes with Synlait and that it intended to
support and participate in Synlait’s equity raise. The disputes
settlement is conditional on Synlait completing its equity
raise and the refinancing of its banking facilities. The disputes
settlement removes the uncertainty associated with arbitration
and includes the cancellation of Synlait’s exclusive rights to
manufacture and supply Stages 1 to 3 of a2MC’s current IMF
products (being a2 Platinum® and a2
至初®) for sale by a2MC
in the markets of China, Australia and New Zealand with effect
from 1 January 2025. This will provide the Company with supply
flexibility in the future.
Obtaining access to additional China label SAMR registrations
is a critical part of the Company’s supply chain transformation
strategy and remains a top priority of the Board. As part of the
Synlait disputes settlement we have secured agreement to
access a potential second China label IMF registration slot to be
developed with Synlait subject to SAMR approval. The Company
is working on securing more registrations which is likely to
require significant capital investment and we hope to provide
more details over the coming year.
We continue to prioritise investment in growth opportunities
focused on our supply chain transformation and will also
consider other investment opportunities over time. To the
extent there is a surplus capital available, the Board will make
a disciplined assessment of the potential to return capital to
shareholders and the most appropriate option to do so.
It was another busy year for the Board and I thank all Directors
for their contribution to the Company. I also thank our Managing
Director and CEO, David Bortolussi, his Executive Leadership
Team, and all our team members across China, New Zealand,
Australia and the USA for the way in which they live our values
and execute our strategy.
It has been an honour and privilege for me to serve on the
Board of The a2 Milk Company over the past five years, and
I am delighted to have taken on the role as Chair of the Board.
On behalf of the Board I extend our thanks to the former Chair,
David Hearn, for his many years of service to the Company, until
stepping down in November 2023.
I am excited about the future of our Company given the
progress we have made and the opportunities we are seeking to
capitalise on. Our fantastic brand continues to resonate with our
consumers in our key markets. This gives me confidence in the
future and our direction.
Finally, to our shareholders, thank you for your ongoing support
and interest in the Company. We look forward to seeing many of
you at the Annual Shareholders Meeting in November.
Pip Greenwood
Chair
18 August 2024
The a2 Milk Company 2024 Annual Report 3

Image by Britta Campion/Newspix.
4
Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review

CEO’S YEAR IN REVIEW
DAVID
BORTOLUSSI
Strong execution delivered positive FY24 result
The Company continued to execute well against its growth strategy, primarily focused
on the China market, delivering positive FY24 results.
Group financial performance
1, 2, 3
The a2 Milk Company (“the Company”, “a2MC”) announces its financial results for the 12 months ended 30 June 2024.
Key results are as follows:
FY24 ($m)FY23 ($m)Variance (%)
Revenue1,675.51,592.95.2%
EBITDA
4
234.3219.36.9%
Net profit after tax
- Attributable to owners of the Company
167.6155.67.7 %
Basic earnings per share (cents)23.221.29.2%
Net cash
5
968.9757.228.0%
Revenue was up 5.2% to $1,675.5 million, driven by continued growth in the China & Other Asia segment up 14.1%, partially offset
by a 14.6% decrease in the ANZ segment mainly due to a change in distribution strategy (with English label infant milk formula
(IMF) sales shifting to the China & Other Asia segment). USA segment revenue increased 8.2% and MVM decreased 11.0%.
Total IMF sales grew 4.6% with China label up 9.5%. English label IMF sales were down 0.3%, growing 6.9% in 2H24 versus 2H23.
Liquid milk sales grew 4.8%, with ANZ up 3.3% and USA up 7.4%. Other nutritional sales, which consist of non-IMF powdered milk
products and China & Other Asia liquid milk products, grew 36.7%, and ingredients (MVM) decreased 11.0%.
Gross margin percentage
6
of 45.8% was 0.6ppts lower than FY23, primarily due to higher input costs associated with the
upgraded China label product, a2
至初®, and the impact of MVM’s coal-boiler accelerated depreciation, partially offset by margin
improvement initiatives. Excluding the MVM boiler depreciation impact of $10 million, gross margin as a percentage of net sales
revenue was broadly similar to prior year.
1 All references to full year (FY), halves (H) and quarters (Q) relate to the Company’s financial year, ending 30 June.
2 All figures are in New Zealand Dollars (NZ$), unless otherwise stated.
3 All comparisons are with the 12 months ended 30 June 2023 (FY23), unless otherwise stated.
4 EBITDA is a non-GAAP measure and does not have a standardised meaning prescribed by GAAP. However, the Company believes that in combination
with GAAP measures, it assists in providing investors with a comprehensive understanding of the underlying operational performance of the business.
A reconciliation of EBITDA to net profit after tax is shown in the Company’s FY24 Investor Presentation (slide 59) dated 19 August 2024.
5 Including term deposits and borrowings, excluding subordinated non-current shareholder loans.
6 Gross margin percentage is calculated as sales less cost of goods sold, divided by sales.
The a2 Milk Company 2024 Annual Report 5

PLACEHOLDER FOR CEO
$303m
Liquid milk 4.8%
$1,160m
Infant nutrition 4.6%
$110m
Other nutritionals 36.7%
* Revenue excluding intercompany sales.
$1,675m
Revenue 5.2%
$168m
NPAT attributable to owners
of the Company
7.7%
$234m
EBITDA 6.9%
23.2c
Earnings per share
9.2%
$256m
Operating cash flow
$969m
Net cash
GROUP
PERFORMANCE
PRODUCT SEGMENT
REVENUE
OPERATING SEGMENT REVENUE
CEO’s year in review (continued)
6Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review
$1,143m
China and Other
Asia
14.1%
$317m
Australia and
New Zealand
14.6%
$114m
USA 8.2%
$101m*
Mataura Valley Milk 11.0%

PLACEHOLDER FOR CEO
Distribution costs were slightly lower, with higher costs
associated with China label IMF product transition offset by
an improvement in USA freight rates and increased focus on
customer cost to serve.
Marketing investment increased 7.6% to $280.1 million
(16.7% of net sales revenue) and support the launch and
transition of the upgraded GB registered China label IMF
product,
a2 至初®. Administrative and other expenses (SG&A)
increased 3.3% to $236.2 million primarily due to capability
and other investment, particularly in China and supply chain.
This was partially offset by lower LTI expenses and reduced
FX hedge losses. SG&A as a percentage of net sales revenue
reduced from 14.4% in FY23 to 14.1% in FY24.
EBITDA increased 6.9% to $234.3 million, with EBITDA
margin increasing to 14.0% (up 0.2ppts). Depreciation and
amortisation increased to $32.2 million due to the accelerated
depreciation of the MVM coal-fired boiler following the
successful commissioning of a high-pressure electrode boiler.
Net finance income increased to $35.9 million reflecting
higher cash balances and increased market interest rates.
NPAT including amounts attributable to non-controlling
interests was $153.9 million, an increase of 6.2%. Amounts
attributable to non-controlling interests, a loss of $13.7 million,
represent China Animal Husbandry Group’s 25% interest in
MVM. Excluding this loss, NPAT attributable to owners of the
Company was $167.6 million, up 7.7%.
The balance sheet further strengthened during the year with
closing net cash of $968.9 million, up $211.7 million on prior
year. Inventory of $179.6 million was down 7.1% on prior year,
largely due to a reduction in English label inventory levels
driven by late inventory receipts in the prior year and lower
China label and English label early stage inventory due to
2H24 sales performance.
Excluding interest and tax, operating cash inflow was
$294.5 million, representing operational cash conversion
of 125.7%
7
, up 67.5ppts on prior year. FY23 was impacted
by higher payments due to catch-up payments delayed from
FY22 into 1H23 due to COVID-19 related disruptions (outside
of the Company’s control) and the earlier timing of payments
for China label IMF products impacted by the GB registration
transition.
7 Operating cash conversion defined as net cash flow from operating activities before interest and tax divided by EBITDA.
8 Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities); unless otherwise stated.
Kantar had a major round of data update in 2H24 which resulted in the restatement of historical data.
9 China National Bureau of Statistics.
10 Nielsen MBS retail measurement service: mother and baby stores only retail sales (by value). FY24 versus FY23.
11 Smart Path China IMF online market tracking: for DOL only retail sales (by value). FY24 versus FY23.
12 Smart Path China IMF online market tracking: for CBEC only retail sales (by value). FY24 versus FY23.
China market update
8

The number of newborns in China declined 5.6% in CY23 to 9.0
million
9
reflecting an improvement in trajectory over the past
several years with a positive outlook for CY24, but with longer
term decline expected due to socio-demographic trends.
The China IMF market declined 8.6% in volume and 10.7% in
value in FY24. The decline in Key&A cities exceeded BCD cities,
with Key&A market value decreasing 11.9% and BCD market
value decreasing 9.4%. The market decline reflected the
cumulative impact of fewer newborns, increased competitive
intensity and challenging macroeconomic conditions.
China label IMF market value declined 12.5% with the mother
and baby stores (MBS) channel down 16.1%
10
and domestic
online (DOL) channel down 12.2%
11
. Across China label
channels, there was significant pricing pressure impacted
by the combination of volume pressure resulting from fewer
newborns, the market-wide transition to new GB registered
products with clearance of old GB registered products, and
challenging macroeconomic conditions.
Following several years of significant declines, the English
label IMF market outperformed the overall market with value
up 3.8%. A proportion of consumers switched from China label
product to English label product, and the English label market
recovered value share to 17.2% of the overall China IMF market,
up from 15.3% in FY23. English label channel mix continued
to shift – the Daigou channel experienced a further significant
decline of 14.3%, while the offline-to-online (O2O) channel grew
by 5.5% and cross-border e-commerce (CBEC) experienced
significant growth up 11.0%
12
. a2MC’s distribution strategy is
focused on continuing to expand share in the growing CBEC
and O2O channels which account for approximately 69% of
the English label market, including emerging channels such as
Douyin/TikTok.
Market dynamics and the market-wide GB registration
transition have led to increasing brand concentration within the
China IMF market with all top-5 brands gaining market share
and now representing over 54% of market value.
In the context of challenging macroeconomic and IMF market
conditions, a2MC’s growth in FY24 in China label IMF of 9.5%
and total IMF of 4.6% reflected a strong performance overall.
The a2 Milk Company 2024 Annual Report 7

“ A major highlight for the year
was the successful launch of
our upgraded China label IMF
product, a2
至初®
.”
Regional and product
performance
1. China & Other Asia
Growth in the China & Other Asia segment was driven by
continued strong execution of the Company’s growth strategy
and the well-executed China label IMF product launch and
transition. Revenue of $1,143.1 million was up 14.1%, with
EBITDA of $290.1 million up 14.2%. The combination of
increased investment, high impact marketing campaigns and
strong sales execution underpinned further improvements in
key brand health metrics and market share during the year.
This resulted in a2MC becoming a top-5 IMF brand in the
overall China IMF market taking into account its combined
share in both the China and English label markets. New highs
in China brand health metrics were achieved with total a2MC
IMF prompted brand awareness increasing from 63% to 66%,
unprompted brand awareness increasing from 23% to 25%, top
of mind brand awareness increasing from 9% to 12%, and trial
and brand equity metrics increasing with the target audience
13
.
China & Other Asia: China label IMF
China label IMF sales increased to $612.3 million, up 9.5%.
The continued strong performance of China label IMF was
underpinned by the careful execution and transition to
the upgraded China label IMF product, a2
至初®. This was
achieved despite the declining market and continued volatility.
Consumer demand for a2
至初® remained strong with market
value share improving both in-store and online, supported by
the upgraded formulation and packaging.
To support the launch and transition of the upgraded a2
至初®
product, marketing investment was increased with integrated
campaigns across all sales channels and media including
high impact advertising reinforced at point of sale. This was
complemented by bespoke activities for key MBS accounts
and impactful brand days with key DOL platforms.
13 a2MC internal data based on the Company’s brand health tracking undertaken by Ipsos. Average brand health metrics for each financial year based
on 3 surveys in FY21 and FY22, 2 surveys in FY23, and 3 surveys in FY24. Sample skews to a2MC target consumers (ie higher income earners based in
Provinces / cities that are the focus of sales and marketing activities).
14 a2MC internal data tracking of stores with active sales in the past 6 months.
15 Nielsen MBS retail measurement service: mother and baby stores only retail sales (by value). FY24 versus FY23. Nielsen had a round of panel
enhancement in Jan-24 which led to the restatement of historical data.
16 Smart Path China IMF online market tracking: for DOL only retail sales (by value). FY24 versus FY23.
17 English label IMF includes sales via CBEC, Korea, Vietnam and Hong Kong Resellers.
18 Smart Path China IMF online market tracking: for CBEC only retail sales (by value). FY24 versus FY23.
MBS weighted distribution increased modestly as well as same
store sales, driving share gains. Offline distribution increased to
over 29,000 stores, with the growth largely occurring in 2H24
from increased expansion in BCD cities
14
. A significant number
of store closures occurred in the market during the period
reflecting challenging retail and IMF category conditions.
Building share in national key accounts, increasing distribution
in regional key accounts, targeting greater penetration of BCD
cities, and testing new strategies for accelerated growth in
prioritised provinces are key priorities.
Retail market value for the MBS channel was down 16.1%
15
,
reflecting the cumulative impact of fewer newborns, store
closures and disruption driven by the market wide transition to
new GB products and challenging macroeconomic conditions.
a2MC’s market value share in MBS increased to 3.5% compared
with 3.3% at the end of June 2023.
Online growth for China label IMF was another highlight. While
retail market value for the DOL channel was down 12.2%
16
,
a2MC’s market value share in DOL increased to 3.9% compared
with 3.3% in FY23. a2MC’s share of early-stage product sales
continued to increase as more users shift to online channels.
China & Other Asia: English label IMF
17

The China & Other Asia segment continued to benefit from
a2MC’s strategic decision to focus on CBEC and O2O channels,
investment in execution capability, and leading distributor
partnerships. English label IMF sales in the China & Other Asia
segment of $447.8 million were up 16.0%.
The Company is focused on CBEC growth and building digital
marketing and e-commerce capability to further improve its
execution which is having an impact, particularly on new user
recruitment. While reported CBEC market share decreased from
22.6% to 20.5%
18
, there was strong growth in retail sales of
a2MC English label IMF through emerging CBEC channels such
as Douyin/TikTok, which are not included in a2MC reported
Smart Path market share data. Similar to DOL, a2MC’s share of
early-stage product sales increased significantly in CBEC.
CEO’s year in review (continued)
8Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review

Another key focus for English label distribution has been the
development of the O2O channel. a2MC has further improved
its distribution footprint and share in O2O key accounts, ‘long-
tail’ O2O and ‘POP’ accounts, continuing its partnership with
Yuou, one of the leading O2O distributors in China.
The distribution model was further refined in FY24 including
the increased utilisation of drop-shipping fulfilment models
via Tier-1 distributors to service O2O stores and C2C networks.
Trade inventory positions were reduced and service and
fulfilment time for consumers was improved. In addition,
shipments of a2 Platinum® IMF to Vietnam commenced
in 2H24.
Overall, the Company’s total English label market share
in China increased to 20.2%
19
.
China & Other Asia: Other nutritional products
Sales of other nutritional products in the China & Other Asia
segment were up 46.4% to $82.9 million, benefitting from new
products launched in FY23 and FY24, a new organisational
structure put in place to focus on this important opportunity
and improved execution. The strong performance in these
categories, particularly in milk powder and UHT, was also
supported by increased marketing investment through brand
building campaigns, leveraging both the a2
TM
brand’s online
and offline execution success.
19 Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key & A + BCD cities). 12-month rolling share for FY24.
20 Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key & A + BCD cities). 12-month rolling share for FY24.
21 Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key & A + BCD cities). 12-month rolling share. FY24 versus FY23.
2. Australia and New Zealand
The Australia and New Zealand (ANZ) segment result was
driven by lower IMF sales to the Daigou channel due to a
change in a2MC’s EL IMF distribution strategy and a relatively
strong prior corresponding period associated with the
a2 Platinum® refresh. Overall, ANZ revenue of $317.3 million
was down 14.6%, and EBITDA of $63.0 million was down 32.6%.
Australia and New Zealand: English label IMF and other
nutritionals products
The Daigou channel market value was down 14.3% in FY24
20
.
Whilst IMF reseller and retail sales decreased 39.4% to
$98.5 million versus FY23, both sales and channel declines
have stabilised more recently during the year. While English
label IMF focus remains on the CBEC and O2O channels,
support for the Daigou channel continued through consumer
marketing campaigns and further enhanced reseller trade
support programmes.
O2O and Daigou channel combined market value was down
10.0% with growth in the O2O channel partially offsetting
Daigou channel decline. a2MC’s market share in the O2O and
Daigou channel slightly decreased to 19.7% in FY24 versus
20.3% in FY23
21
.
The a2 Milk Company 2024 Annual Report 9

“ In FY24, the Company
continued to drive a2 Milk®
Lactose Free penetration in
Australia and improved USA
profitability significantly.”
To broaden its English label IMF portfolio, the Company
progressed the development of English label IMF products with
a new commercial IMF supply partner (Yashili NZ, a subsidiary
of Mengniu). a2 Gentle Gold™, which is positioned below
a2 Platinum®, was launched late in 2H24 in Australian retail
channels and selected channels in China. a2MC is expecting
to launch an additional English label product to be positioned
above a2 Platinum® in FY25.
Revenue for other nutritional products was up 13.5% to
$26.8 million with the portfolio continuing to grow during
the year, with the launch of two new fortified products
(a2™ Immune and a2™ Move) during the second half.
Australia and New Zealand: Liquid milk
Australian liquid milk sales were up 3.3% to $190.2 million led
by the contribution from a2 Milk® Lactose Free, partly offset by
lower sales from the core milk range. This reflects a challenging
consumer environment impacted by cost-of-living pressures,
with a market shift from branded milk products to private label
in the category overall which stabilised during 4Q24. Despite
the challenging market conditions, a2MC’s market value share
of 11.5% grew 0.2ppts versus 1H24, supported by a2 Milk®
Lactose Free which grew to 13.5% share
22
of the lactose free
category. a2 Milk® (including a2 Milk® Lactose Free) is now
the number one dairy milk brand nationally
23
. Growth in FY24
was supported by dedicated marketing activations to drive
awareness and purchase.
An upgrade of the Smeaton Grange facility was completed
and the upgrade of the Kyabram milk processing facility with
Kyvalley Dairy Group is on track for completion during FY25.
22 IRI Australian Grocery Weighted Scan, share of Dairy Milk market, MAT period.
23 IRI Australian Grocery Weighted Scan, dollar share, MAT to June 2024.
24 SPINS data for the Grocery channel only for the 52 weeks ending 30 June 2024 and 30 June 2023.
3. USA
USA grew revenue by 8.2% to $113.7 million and significantly
improved its landed margin (gross margin less distribution
costs) resulting in an improved EBITDA loss of $15.5 million
(FY23: $23.3 million loss).
The revenue increase was mainly driven by a reduction in
promotional activity and supported by growth of the a2 Milk®
Grassfed product. a2MC’s market value share in the premium
milk category for the Grocery channel was slightly down at
2.2% (FY23: 2.3%)
24
.
a2MC commenced distribution of a2 Platinum® IMF during
FY24 under the US Food and Drug Administration’s (FDA)
short-term Enforcement Discretion approval with selected
retailers in-store and online including Amazon and Walmart.
Sales recognised during the year were not material, with a
focus on establishing the supply chain and trialing different
sales and marketing approaches, whilst pursuing long-term
FDA approval. a2MC’s New Infant Formula Notification is on
track to be filed during 1Q25, with long-term approval targeted
to be achieved during FY26, subject to FDA approval.
The improved EBITDA loss was due to reduced promotional
activity, improved input costs and distribution rates and
reduced SG&A costs, partly offset by higher costs incurred
with respect to pursuing long-term FDA approval.
Accelerating the path to profitability in the USA remains a
priority. Whilst USA losses have significantly reduced, given
the likely investment related to USA IMF, the timeframe to
achieve profitability is now more likely to be by FY27, with
the USA liquid milk business expected to achieve breakeven
contribution margin in FY26.
CEO’s year in review (continued)
10Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review

4. Mataura Valley Milk
During FY24, the Company continued to execute against its
supply chain transformation strategy, including developing
nutritional manufacturing capability, increasing access to
raw A1 protein free milk in Southland (including organic) and
commencing the production and sale of a2 Platinum® Stage 4
IMF base powder with a new commercial supply chain partner
(New Zealand New Milk, a subsidiary of Lactalis).
Revenue of $101.4 million
25
and an EBITDA loss of $20.5 million
were recorded for the period. The improved EBITDA loss
position (FY23: $26.5 million) reflects an improved sales mix,
with increased volume of higher-value products (including
nutritional base powder), plus a continued cost and
productivity focus across the site. The improved loss profile
in 2H24 largely reflects higher nutritional and A1 protein free
powder sales, plus the normal impact of the seasonal winter
shutdown during the first half.
Accelerating MVM’s path to profitability is also a key priority.
Growth in A1 protein free milk supply, nutritional product
mix and facility utilisation are key drivers of profitability.
Whilst management is working on a range of initiatives to
achieve breakeven by FY26, at this stage it is more likely that
profitability will be achieved by FY27.
Innovation and supply chain transformation
The Company advanced several initiatives to ramp-up
innovation and transform its supply chain during the year.
Significant innovation milestones included the Company’s
upgraded GB registered China label IMF product, a2
至初®,
as well as the launch of a new English label IMF product,
a2 Gentle Gold™, into Australian retail channels and selected
China channels, organic milk powder in a tub and new fortified
milk powder products in 2H24 targeting adults and the growing
seniors market. Alongside product innovation, the Company
continued to invest in innovation and product development
capability to unlock future opportunities.
The Company progressed its supply chain transformation
strategy during FY24 through new commercial supply chain
partnerships with New Zealand New Milk (subsidiary of
Lactalis) and Yashili NZ (subsidiary of Mengniu), and produced
new A1 protein free products in partnership with MVM,
including nutritional base powders.
25 Revenue excluding intercompany sales.
26 In respect of Stages 1-3 of a2MC’s current IMF products (being a2 Platinum® and a2
至初®) for sale by a2MC in the markets of China, Australia and
New Zealand.
As announced on 16 August 2024, the Company resolved the
various disputes subject to arbitration with Synlait Milk Limited
(Synlait) subject to Synlait completing its equity raise and the
refinancing of its existing banking facilities. The Company also
agreed to support and subscribe for shares under Synlait’s
equity raise on terms to be agreed, to be set out in Synlait’s
forthcoming notice of meeting. The resolution of the disputes
will remove any arbitration uncertainty and the cancellation
of Synlait’s manufacturing and supply exclusivity rights
26
from
1 January 2025 will provide additional flexibility to a2MC to
further enable its supply chain transformation strategy. The
Company also expects to gain access to a potential additional
China label registration slot at Synlait’s Dunsandel facility to
be developed by December 2029 subject to SAMR approval.
The Company is working on options to accelerate access
to additional controlled China label IMF registrations to
achieve greater China market access and to develop its own
manufacturing capability consistent with its growth strategy.
Capital management
The Board is conscious of the significant amount of net cash
held on the balance sheet at year end. Consistent with the
Company’s capital allocation framework, priority is being
given to transforming and de-risking a2MC’s supply chain to
enable future growth focused on investment in New Zealand
and China. Once the Company’s supply chain transformation
is further developed and other investment opportunities are
considered, to the extent there is a capital surplus to achieving
a2MC’s priorities, the Board will make a disciplined assessment
of the potential to return capital to shareholders and the most
appropriate option to do so.
The a2 Milk Company 2024 Annual Report 11

CEO’s year in review (continued)
Sustainability
Significant progress was made in executing against the
Company’s sustainability goals with 100% of certified farms
supplying raw A1 protein free milk to have an upgraded
animal welfare programme and a farm environmental plan
in place. The Company continued to invest in its a2™ Farm
Sustainability Fund in New Zealand and Australia with high
participation by farmer suppliers. Regarding sustainable
packaging, the Company continued to collaborate with industry
groups and progressed against its roadmap. However, more
work is required to meet packaging targets which will be a
focus in FY25.
From a climate perspective, the Company significantly reduced
its Scope 1 and 2 GHG emissions by 45%
27
. This achievement
was heavily supported by the successful commissioning of
a high-pressure electrode boiler at MVM, along with the full
electrification of the MVM site, powered by certified renewable
energy
28
. The Company also made good progress against
its target of net zero Scope 3 GHG emissions by 2040 by
completing a methane inhibitor feasibility study in Australia
and investing in AgriZero
NZ
, a partnership between the New
Zealand Government and major agribusiness companies to
reduce on-farm biogenic methane and nitrous oxide emissions.
Medium-term ambition
In October 2021, as part of its refreshed growth strategy,
a2MC defined its medium-term financial ambition (ie by
FY26 or later) to grow revenue from $1.2 billion in FY21 to
approximately $2 billion and to target EBITDA margins in
the ‘teens’.
The Company’s execution of its growth strategy has been in
line with its expectations, and it is well positioned to achieve
future growth, despite the China IMF market having contracted
significantly more than expected at the time it set its ambition.
27 Using market based calculation for Scope 2.
28 MVM purchases Meridian’s Certified Renewable Energy production values product to enable it to exclusively match the amount of electricity it uses
on an annual basis with an equivalent amount of electricity put into the national grid from one of Meridian’s hydro stations or wind farms (which have
been independently verified as producing 100% renewable electricity). Actual electricity received on location is from mixed renewable and fossil fuel
sources, due to the nature of the electricity transmission and distribution system.
29 a2MC Group sales and EBITDA FY21 versus FY24.
30 a2MC sales of China label FY21 versus FY24.
31 a2MC sales of English label FY21 versus FY24.
32 Kantar Worldpanel 0-6 years old Baby & Kids panel: National IMF market tracking (Key&A + BCD cities). China and English labels combined.
MAT to June 2021 versus MAT to June 2024.
33 a2MC sales of other nutritionals FY21 versus FY24. Other nutritionals consists of non-IMF powdered milk products and China & Other Asia liquid milk.
34 a2MC sales of liquid milk in ANZ and USA FY21 versus FY24.
The Company announced on 19 February 2024 as part of its
FY24 Interim Results that whilst it remains possible for the
Company to achieve its medium-term revenue ambition of
approximately $2 billion by FY26 or later, at this stage it is
likely to be achieved by FY27 or later. The Company continues
to target EBITDA margins in the ‘teens’ with year-on-year
improvement.
Since announcing its refreshed growth strategy in 2021, a2MC
has gained significant share in the China IMF market and
achieved strong growth in Group revenue and EBITDA of 38.8%
and 89.9% respectively
29
. a2MC has grown its China label IMF
sales by 57.1%
30
and stabilised its English label IMF sales, which
were up 4.4%
31
. The Company has increased its share of the
total China IMF market from 4.9% to 7.3%, becoming one of the
most successful brands in China and in the top-5 overall
32
.
a2MC has significantly transformed its IMF channel mix,
continuing to focus on CBEC and O2O channels and away from
the Daigou channel. As a result, the China label, CBEC and O2O
channels represented approximately 90% of the Company’s
IMF sales in FY24 compared to approximately 60% in FY21. The
Company has also grown sales in the other nutritional products
category by 86.1%
33
and its combined liquid milk business in
ANZ and USA by 30.3%
34
.
Delivery of a2MC’s medium-term financial and non-financial
ambition remains underpinned by the successful execution of
its strategy which is comprised of five key strategic priorities:
1. Investing in people and planet leadership – particularly
in relation to its capability and sustainability objectives
2. Capturing the full potential in China IMF – including
expansion into lower tier cities and online channels
3. Ramping-up product innovation – including portfolio
expansion in English label IMF, China label IMF and
other nutritionals for kids, adults and seniors, as well
as leveraging the portfolio into new markets
4. Transforming its supply chain – particularly accessing
additional China label IMF registrations and developing
its nutritional manufacturing capability through MVM and
other commercial and acquisition opportunities primarily
in New Zealand and China over time
5. Accelerating the path to profitability for the USA and
MVM businesses.
12Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review

“ Since announcing its refreshed
growth strategy in 2021, the
Company has gained significant
share in the China IMF market from
4.9% to 7.3%, and achieved strong
growth in Group revenue and EBITDA
of 39% and 90% respectively.”
FY25 Outlook
China IMF market conditions remain challenging and the
Company expects a further market value decline in FY25.
At this stage, the Company is expecting mid single-digit
revenue growth in FY25 versus FY24, with growth affected
by IMF supply constraints which are expected to be resolved
in 1H25.
FY25 gross margin (% of sales) is expected to be broadly
similar to FY24, with 1H25 down (impacted by airfreight)
and 2H25 up compared to prior year.
An increase in brand investment is planned for FY25 with a
similar reinvestment rate (% of sales), and Administrative &
Other expenses are expected to be similar to down compared
to FY24 (% of sales).
The Company expects EBITDA margin (% of revenue) to be
broadly similar to FY24, with 1H25 down and 2H25 up compared
with prior year.
Operational cash conversion is expected to be less than 100%
impacted by the settlement of Synlait FY24 payments withheld
in accordance with contractual arrangements and a reduction
in purchase order deposit payment terms going forward.
Capital expenditure is expected to be approximately
$20 million.
Key risks
In addition to the challenges noted above and trading
upsides and downsides, other risks include, but are
not limited to, challenging macroeconomic conditions,
China IMF category dynamics and competitive intensity,
further supply related risks, cross border trade, foreign
exchange movements, changes in interest rates, farmgate
milk pricing and other commodity prices, and changes in
the regulatory environment. These challenges and risks
could materially impact expected revenue and earnings
outcomes. For more information on key risks refer to the
Risks and Opportunities section of the Annual Report.
David Bortolussi
Managing Director and Chief Executive Officer
18 August 2024
The a2 Milk Company 2024 Annual Report 13

Building a
sustainable
growth business
14Corporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in reviewBuilding a sustainable growth business

WHO WE ARE
The a2 Milk Company is a dairy nutritionals company,
fuelled by its purpose to pioneer the future of Dairy for good.
The Company was founded in 2000 in New Zealand by scientist
Dr Corran (Corrie) McLachlan and his business partner,
Howard Paterson, who recognised that not all milk is the same.
Dr Corrie McLachlan joined Sir Robert (Bob) Elliot – who had
earlier discovered that proteins in milk affect people differently
– to pioneer research to understand these differences better.
Originally all cows’ milk contained only A2 beta-casein protein.
The A1 protein arose through a genetic mutation over many
years. Today, most ordinary milk contains a mixture of A1 and
A2-type beta-casein proteins. Results of several published
peer-reviewed human clinical trials have shown that A1 protein
can cause digestion issues for some people. A scientific and
proprietary way to identify cows that naturally produce A1
protein free milk was also discovered.
Today, a2MC continues to pioneer this science and research,
bringing A1 protein free milk to the world, allowing more
consumers to enjoy its unique digestive and other potential
health benefits.
The Company produces a portfolio of products made with
milk from specially selected cows that naturally produce milk
containing only A2-type beta-casein protein and no A1.
These products include fresh milk, ultra-heat treatment (UHT)
milk, extended shelf life (ESL) milk, infant milk formula (IMF),
plain milk powders (including instant whole and skim milk
powder), fortified milk powders providing nutrition for infants,
children, adults, pregnant women and seniors and other dairy
nutritional products primarily for the China, Australia, New
Zealand and North America markets.
The Company’s primary business activities are:
–China and Other Asia: Sales of China label and English
label IMF, liquid milk and other nutritional products in
offline stores and domestic and cross-border e-commerce
channels.
–ANZ: Sales of English label IMF, plain and fortified milk
powders for children, adults and pregnant women through
reseller and retail channels, and sales of liquid milk across
Australian and New Zealand retail channels. It is understood
that the majority of IMF and Milk Powder sales to customers
in ANZ are ultimately consumed in China.
–North America: Sales of liquid milk, IMF and other
nutritional products in the United States of America and
liquid milk in Canada.
–Mataura Valley Milk: Production of nutritional and
ingredients products for a2MC and other external customers
in overseas markets.
WHAT MAKES US UNIQUE
The a2 Milk Company’s purpose is to pioneer the future of Dairy for good with
a vision to create an A1-free world where Dairy nourishes all people and our planet.
BOLD
PASSION
We believe in the power
of the a2™ proposition.
We are pioneers and always
find a way to make it happen.
We are passionate about our
consumers and customers.
OWNERSHIP
AND AGILITY
We align on outcomes and
prioritise initiatives.
We are effective in teams and
do what we say we will do.
We are flexible and act with
a sense of urgency.
LEADING
CONSTRUCTIVELY
We are proud of what we
do and how we do it.
We encourage and develop
ourselves and others.
We are honest, direct and
respectful in our interactions.
DISRUPTIVE
THINKING
We think big, creatively and
logically to maximise impact.
We are better together
and unlock the power
of the collective.
We challenge existing
ways of working to achieve
better solutions.
OUR VALUES
The a2 Milk Company 2024 Annual Report 15

Strategic and distribution partners
Strategic and supply chain partners
Licensee fresh milk
New Zealand
Licensee fresh milk
Canada
Subsidiary
of Lactalis
Subsidiary
of Mengniu
WHAT WE DO
China and Other Asia
Revenue $1,143m
EBITDA$290m
Estimated
market size
NZD$29 billion China IMF market
1,2

NZD$1 billion

Vietnam IMF market
3,4
Supply chain – China State Farm importation agent
and master distributor
– Over 100 distributors
Our people144 (headcount)
Product portfolio
Australia and New Zealand
Revenue $419m
EBITDA$43m
Estimated
market size
NZD$2.3 billion Dairy Milk market
5,6
NZD$0.4 billion Australia IMF market
5,7

Supply chainAustralia (Liquid Milk)
– Smeaton Grange (a2MC)
– Kyabram (a2MC)
– Four third-party processing
relationships
– 21 farmer suppliers
New Zealand (Nutritionals)
– 75% interest in Mataura Valley Milk
– 19.8% interest in Synlait Milk
– 198 farmer suppliers
Our people320 (headcount)
Product portfolio
16Corporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in reviewBuilding a sustainable growth business

Strategic and distribution partners
Strategic and supply chain partners
Licensee fresh milk
New Zealand
Licensee fresh milk
Canada
Subsidiary
of Lactalis
Subsidiary
of Mengniu
1 Assumes RMB to NZD exchange rate of 4.4:1.
2 Source: FY24 Market size based on a2MC internal estimation
approach, which may be adjusted year-to-year, and which may
result in market size not being directly comparable across periods.
3 Assumes USD to NZD exchange rate of 1:1.69.
4 Source: Globaldata.
5 Assumes AUD to NZD exchange rate of 1:1.11.
6 Source: Circana IRI Australia Grocery Weighted.
7 Source: Circana IRI including Grocery and Pharmacy.
8 Source: USA Food FY24 retail milk sales in the Premium Segment.
9 Source: SPINS data for IMF sales.
North America
Revenue $114m
EBITDA($15m)
Estimated
market size
NZD$4.4 billion premium
liquid milk segment
3,8
NZD$10 billion USA IMF market
9
Supply chain – Three third-party processing
relationships
– 9 farmer suppliers
– IMF sourced from New Zealand
Our people24 (headcount)
Product portfolio
The a2 Milk Company 2024 Annual Report 17

Our people
Through a purpose driven culture underpinned by our values,
we aim to create an environment that provides our people with
opportunities to thrive. Our success is the result of our diverse,
skilled and engaged team, aligned and focused to deliver on our
purpose and strategy. We are committed to the wellbeing and
safety of our people and are continuing to develop systems and
processes to identify, control, report, investigate and monitor
health and safety risks and actions across the business.
Our brand
Our trusted brand, our proprietary know-how and our
A2-type protein expertise are our most valuable assets. We
are committed to maintaining and growing these assets with
appropriate investment. Through ongoing science and research
programmes, we are deepening our expertise and advancing global
understanding of the potential health benefits of a2 Milk
TM
.
Our environment
Access to natural resources and a thriving agricultural
sector that supports healthy ecosystems is fundamental
to our business. We recognise that climate change and
pressures on agricultural and food systems present a
systemic challenge for our world – and we are committed
to finding unique and high impact solutions across our
value chain to help address these challenges. Appropriately
meeting this challenge will enable us to continue providing
premium a2 Milk
TM
based products to our consumers and
long-term value to our shareholders.
Our supply chain
Complementing our own fresh milk and nutritionals
production capability, we work closely with our suppliers
and farming community to maintain a reliable and
responsible sourcing and manufacturing supply chain.
We believe this is critical to our long-term success.
Our communities
We support communities in our key regions of New Zealand,
Australia, China and the USA, with a focus on proactive
wellness to nourish the lives of children and families and
helping them to thrive.
Our finances
We carefully balance investment in our supply chain and
distribution through both strategic partnerships and direct
ownership. Combined with the growth of our premium products,
this approach has enabled us to build a strong and robust
balance sheet, which, guided by our capital management
framework, provides financial capital for us to deploy in the
pursuit of our strategic objectives.
Purpose
We pioneer
the future of
Dairy for good
Vision
An A1-free world
where Dairy
nourishes all
people and our
planet
Our growth strategy
Page 20
HOW WE CREATE VALUE
18Corporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in reviewBuilding a sustainable growth business

People
Create a safe, diverse, inclusive
and engaging place for our people
to thrive, support our farmers and
contribute to our communities.
Page 24
Planet
Protect our planet and cows,
rethink packaging, achieve net
zero and become nature positive.
Page 34
Consumers
Bring the unique benefits of pure
and natural a2 Milk™ to as many
consumers as possible.
Page 44
Shareholders
Create long-term, enduring value
for shareholders and maintain a
trusted, transparent relationship.
Page 50
Strategic priorities
– Invest in people and
planet leadership
– Capture full potential
in China IMF
– Ramp-up product innovation
– Transform our supply chain
– Accelerate path to profitability
in USA and MVM
Values
– Bold passion
– Ownership and agility
– Leading constructively
– Disruptive thinking
The supply of
nutritional food
products
Competitive
intensity
Doing business
in international
markets
Major
international
events
Climate and
nature
Strategic
partnerships
Evolving
technology and
cyber security
Talent and
culture
Social licence
to operate
Risks and
opportunities
Page 54
Page 55
Page 56
Page 57
Page 58
Page 59
Page 60
Page 61
Page 62
Page 63
The a2 Milk Company 2024 Annual Report 19

The a2 Milk Company’s strategic priorities and goals remain
largely unchanged since it undertook a holistic review of its
market, brand, product and distribution opportunities, which
was communicated to the market in October 2021.
The Company has clear goals in four stakeholder groups,
People, Planet, Consumers and Shareholders, to ensure that
in addition to achieving its commercial ambitions, it is also
actively working to deliver its sustainability priorities and
is executing in a way that further develops a trusted and
transparent relationship with its stakeholders.
The Company’s growth strategy centres on five key priorities:
–Invest in people and planet leadership: Critical to the
Company achieving its commercial objectives is ensuring
it has thriving, high performing teams to execute its
strategy. The Company has continued to invest in people
leadership, including through its constructive leadership
programmes. In addition to its people, the Company has
elevated investment in planet leadership to sit amongst its
top strategic priorities, focusing on taking direct action and
with an ambition to lead the industry, particularly in GHG
emissions reduction, farming practices and sustainable
packaging. The Company is also focused on supporting
healthy ecosystems through initiatives that contribute to
nature positive outcomes.
–Capture full potential in China IMF: Growing share in the
China IMF market remains the Company’s most significant
commercial opportunity.
The Company is particularly focused on share gain in key
accounts, lower tier cities and online channels. Critical to
increasing share will be ongoing brand investment, which
the Company leverages across its English label and China
label IMF product portfolios.
–Ramp-up product innovation: While the Company has
historically been focused on a narrow product range, to
continue to drive growth in IMF and beyond, it will be
important to expand its portfolio in both China label and
English label IMF, as well as leveraging its brand strength
to develop into other product categories for kids, adults
and seniors. Opportunity also exists for the Company in
leveraging existing products into new markets.
–Transform the supply chain: Connected to its IMF
and innovation ambitions, the Company is working
to transform its supply chain. This includes a focus
on obtaining additional China label IMF registrations,
developing nutritional manufacturing capability, leveraging
capacity at Mataura Valley Milk Limited (MVM), as well as
pursuing other investment opportunities and commercial
partnerships. Over time, the Company will also seek to
develop its domestic supply chain capability in China.
–Accelerate path to profitability: To maximise investment
in China and to improve Group return on sales, the Company
needs to ensure it accelerates the path to profitability for
both the USA and MVM. The Company is targeting achieving
this by FY27.
OUR GROWTH STRATEGY
PurposeWe pioneer the future of Dairy for good
VisionAn A1-free world where Dairy nourishes all people and our planet
Goals
PEOPLEPLANETCONSUMERSSHAREHOLDERS
Create a safe, diverse,
inclusive and engaging
place for our people to
thrive, support our farmers
and contribute to our
communities
Protect our planet and cows,
rethink packaging, achieve
net zero and become nature
positive
Bring the unique benefits of
pure and natural a2 Milk™
to as many consumers as
possible
Create long-term, enduring
value for shareholders
and maintain a trusted,
transparent relationship
Strategic
priorities
12345
Invest in people and
planet leadership
– Invest in our people
to enable them to
thrive
– Take direct action
to lead the industry
in GHG emissions
reduction, farming
practices and
sustainable packaging
Capture full potential
in China IMF
– Increase share in key
accounts, expand in
lower tier cities and
further accelerate
online growth
– Invest in brand
strength and leverage
across two labels and
wider portfolio
Ramp-up product
innovation
– Expand EL and CL IMF
product portfolios
– Develop other
nutritionals for kids,
adults and seniors
– Leverage IMF and
other products into
new markets
– Innovate in liquid milk
Transform our
supply chain
– Expand CL market
access through MVM
and other investment
opportunities,
primarily in NZ and
China over time
– Develop supply
capability to enable
innovation
Accelerate path
to profitability
– Improve USA liquid
milk losses and invest
in development of IMF
opportunity
– Increase MVM A1-free
milk pool, nutritional
capability, utilisation
and efficiency
EnablersQuality & serviceBrand strengthScience & innovationStrategic relationships
Values Bold passion Ownership & agility Leading constructively Disruptive thinking
BOLD
20Corporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in reviewBuilding a sustainable growth business

Financial measures of success
In October 2021, as part of its refreshed growth strategy, a2MC
defined its medium-term financial ambition (i.e. by FY26 or
later) to grow revenue from $1.2 billion in FY21 to ~$2 billion
and to target EBITDA margins in the ‘teens’. Since FY21, the
Company’s execution of its growth strategy has been in line
with its expectations, and it is well positioned to achieve
future growth, despite the China IMF market having contracted
significantly more than expected at the time it set its ambition.
The Company announced on 19 February 2024 as part of its
FY24 Interim Results that whilst it remains possible for the
Company to achieve its medium-term revenue ambition of
~$2 billion by FY26, at this stage it is likely to be achieved
by FY27 or later. The Company continues to target EBITDA
margins in the ‘teens’ with year-on-year improvement.
Since announcing its refreshed growth strategy in 2021, a2MC
has gained significant share in the China IMF market and
achieved strong growth in Group revenue and EBITDA from
FY21 to FY24 of 38.8% and 89.9% respectively. a2MC has grown
its China label IMF sales 57.1% during this period and stabilised
its English label IMF sales, which were up 4.4%. The Company
has increased its share of the total China IMF market from
4.7% in FY21 to 7.3% in FY24, becoming one of the most
successful brands in China and in the top-5 overall.
The key drivers for further sales growth are:
–Increasing share of CL and EL IMF through portfolio
expansion and targeting growth in lower tier cities and
online channels
–Growing other dairy and nutritional products in China
through innovation and distribution growth
–Growing in existing and new emerging markets outside
of China (e.g. South East Asia)
–Expanding in milk and adjacent categories in ANZ and
the USA
The Company’s ambition is to improve EBITDA margins
over time and is targeting EBITDA margins in the ‘teens’ in
the medium-term. This will depend on a range of factors,
including China IMF market conditions and channel dynamics,
mix of business (IMF channel mix and overall product
mix), investment levels in brand and capability, timing and
investment required to deliver the Company’s priorities around
its supply chain transformation, and achieving profitability in
the USA and at MVM.
There are also key macro uncertainties that may impact the
future outlook, including:
–How the China birth rate evolves and the impact policy
changes may have on this
–How the competitive landscape will evolve in China,
including following the market-wide transition to the new
GB standard that was mostly completed in FY24
–The extent and pace of change in consumer product and
channel preferences
–How the China regulatory framework and international
relations may evolve and impact trade
–Inflationary pressures impacting operating costs and
introducing cost-of-living pressures for consumers globally
Because of these uncertainties, it is difficult to define future
state targets and when they will be achieved – the path is
also unlikely to be linear. Accordingly, future results may be
materially different to the Company’s ambition.
Non-financial measures of success
The Company is also focused on several medium-term non-
financial measures of success, as summarised in the table on
the following page.
People: The Company is committed to promoting a safe,
diverse, inclusive and engaging environment for its people.
The Company’s ambition is to be an employer of choice in
the industry by creating a fulfilling employee engagement
experience that enables employees to thrive personally
and professionally. To facilitate this ambition, the Company
is targeting below 7 for its safety total recordable injury
frequency rate (TRIFR) with continuous improvement,
improving its employee engagement score to above 80%,
maintaining its diversity and inclusion rating and reducing the
Company’s gender pay gap by at least 2ppts per annum.
Planet: The Company is committed to minimising its impact on
the planet and becoming a more sustainable business across a
broad range of areas. For on-farm and other impact areas, this
includes maintaining 100% of certified farms supplying raw A1
protein free milk having certified farm environmental plans and
upgraded animal welfare programmes.
On emissions, the Company seeks to make meaningful progress
each year towards its target of net zero emissions for Scope
1 and 2 by 2030 and for Scope 3 by 2040, and a reduction in
Scope 3 emissions of 30% (per kilogram of milks solids) by
2030, from a FY21 base year. The Company also seeks to make
meaningful progress each year against its target of 100%
reusable, recyclable or compostable packaging with 50%
average recycled content.
Consumers: The Company has also set brand health, market
share, innovation and supply chain targets to deliver on its
Consumer goals.
For brand health, the Company is targeting greater than 25%
for unprompted awareness in China, household penetration of
16% in Australian fresh milk, and household penetration above
3% in the USA in the premium milk segment.
For market share, the Company is working to become a top five
China label IMF player with greater than 5% market share and
to have the leading English label IMF range with market share
for that range of greater than 25%. For its liquid milk business,
the Company is targeting greater than 15% market share in
Australia and greater than 3% in the premium milk segment
in the USA.
For innovation, the Company is looking to drive $200 million in
incremental revenue from dairy and other nutritionals in China
while also driving 15% of sales from new products in Australia
and the USA.
For supply chain, importantly, the Company is also looking
to secure three or more China label IMF registrations. The
Company targets to maintain the highest food safety and
quality standards, improve supplier and customer service
levels, tightly manage inventory levels and constantly improve
supply chain efficiency.
The a2 Milk Company 2024 Annual Report 21

PLANET
Page 34
CONSUMERS
Page 44
SHAREHOLDERS
Page 50
Medium-term measures of success
GOALS
PEOPLE
Page 24
Brand Health
Page 45
Market Share
Page 45
Innovation
Page 45
Supply Chain
Page 45
1
Safety
Engagement

Diversity
and
inclusion
Gender
pay gap
GHG emissions
reduction
Farm
environmental
plans
Animal welfare
programmes
Sustainable
packaging
China brand
health
AU
household
penetration
USA
household
penetration
MBS share
DOL share
CBEC share
O2O + Daigou
share
Australian
fresh milk
share
USA premium
milk share
China other
nutritionals
growth
Emerging
markets
development
USA sales
from new
products
ANZ sales
from new
products
Access
to ≥3 CL
registrations
CL inventory
management
EL inventory
management
Quality and
service
Supply chain
efficiency
Sales
ambition
of ~$2.0b
(≥FY27)
EBITDA
margin
ambition in
the ‘teens’
targeting
year-on-year
improvement
USA
profitability
by FY27
MVM
profitability
by FY27
234567
On track Work in progress
22Corporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in reviewBuilding a sustainable growth business

At its core, the integrated reporting concept refers to a
principles-based, multi-capital framework in which companies
can communicate clearly and concisely about how their
strategy, governance, performance, and prospects create value
in the context of their external environments.
One of the Company’s goals is to ensure that it creates long-
term, enduring value for shareholders through a trusted,
transparent relationship. A move towards integrated reporting
is one of the ways the Company is seeking to achieve this.
The Company acknowledges recent developments in this
space, particularly its alignment with New Zealand Climate
Standards (NZ CS 1, NZ CS 2, and NZ CS 3).
These standards were published by the Aotearoa New
Zealand Climate Standards External Reporting Board (XRB)
in December 2022. This report has also been prepared with
reference to the International Sustainability Standards Board
(ISSB) and considers the principles of integrated reporting.
During FY24 the Company continued to assess materiality,
informing the Company on which topics to prioritise and
report against, whilst building on its strategic priorities and
aligning with the needs and expectations of its stakeholders.
The assessment included peer benchmarking and alignment
to the United Nation’s Sustainable Development Goals (SDGs),
the Global Reporting Initiative (GRI) and the Sustainability
Accounting Standards Board (SASB).
The Company also acknowledges the increasing expectation
of internal and external stakeholders to ensure non-financial
metrics disclosed externally are done so with a similar level
of rigour to financial reporting. Over the past several years
the Company has taken steps to improve the robustness of its
internal processes to capture and report non-financial data to
be included in external materials. For FY24, the Company has
received reasonable assurance for Scope 1 and 2 emissions and
limited assurance for many of the key non-financial metrics
included in this report.
For further information, please see the ESG assurance report
on page 85 from Ernst & Young. The Company will endeavour to
continue assessing stakeholder requirements and expectations
along with the reporting requirements in all jurisdictions in
which it operates.
OUR REPORTING APPROACH
The Company aims to enhance its reporting, providing
stakeholders with a more comprehensive view of its
ongoing efforts to create and preserve long-term value.
The a2 Milk Company 2024 Annual Report 23

Progress towards our goals – People
PEOPLE
Create a safe, diverse,
inclusive and engaging
place for our people
to thrive, support our
farmers and contribute
to our communities.
SDG 5: Gender equality
Target 5.5
SDG 8: Decent work
and economic growth
Target 8.2
SUSTAINABLE DEVELOPMENT GOALS
Company disclosuresFinancial statementsCorporate governanceBuilding a sustainable growth businessCEO’s year in reviewChair’s letter24

Passionate and thriving team
The Company is committed to upholding a safe, highly
diverse and inclusive environment for its people. The
Company’s ambition is to be an employer of choice
in the industry by creating a fulfilling employee
engagement experience that enables employees to
thrive personally and professionally.
To facilitate this ambition, the Company focuses on health and safety,
invests in leadership, promotes the employee experience, fosters a learning
environment, and celebrates diversity and inclusion.
During FY24, the Company launched various initiatives to deliver on its
ambition and to achieve engaged and effective teams who create long-term
value for the Company and its shareholders.
FY24 PROGRESS
Health, safety and wellbeing
–Continued to focus on managing critical risks and promoting a
safety culture through leadership and education across all sites,
including the use of external resources where appropriate.
–Reported a Total Recordable Injury Frequency Rate (TRIFR) of 6.2,
(compared to 6.1 at the same time last year). This included team
members from all of the Company’s sites (including contractors).
–Provided mandatory workplace behaviour training.
–Continued to provide Employee Assistance Programme
resources to team members across all geographies.
–Further developed health and safety reporting.
–Continued to offer a Global Wellbeing Day.
–Launched Mental Health Awareness Training for people leaders.
–Expanded the Company’s Headspace subscription benefit to include
company-paid membership for family and household members.
SAFETY
<7 TRIFR
with continuous improvement
FY24: 6.2
FY23: 6.1
ENGAGEMENT
>80%
Company-wide engagement survey
March 2024: 72%
October 2023: 69%
DIVERSITY AND INCLUSION
Rated >4
out of 5 Diversity and inclusion
question in engagement survey
FY24: Above 4 out of 5
FY23: Above 4 out of 5
GENDER PAY GAP
At least 2ppts
reduction per annum in global
gender pay gap
FY24: Decrease by 4ppts
to 32.7%
MEDIUM-TERM
PEOPLE TARGETS
PEOPLE SECTION
Passionate and thriving team P25
Gender pay gap equality P28
Human rights P30
Enriching communities P31
The a2 Milk Company 2024 Annual Report 25

Investment in leadership
–Delivered rewards training to all senior leaders globally to
enhance pay transparency across each of our regions.
–Embedded the Lifestyles Inventory (LSI) tool to provide
a common leadership language and support the
development of leadership capability and effectiveness.
–Continued to roll-out the ‘Thrive’ constructive leadership
programme to senior leaders, to support the development
of leadership effectiveness and constructive ways of working.
–Delivered ‘Situational Leadership’ training for leaders at
all levels to provide an integrated and practical approach
to effective leadership styles.
–Launched a2 Sales Business School in China.
–Hosted all senior leaders in New Zealand at the annual Senior
Leader’s Conference to align on strategic priorities and
execution plans for FY25 and share learning, opportunities
and achievements.
Reward, recognition and training
–Partnered with a global consulting firm to undergo an
independent job evaluation process for all roles globally.
–Launched a new global system-based performance review
process, with enhanced leader and team member support
for each step of the annual ‘impact and development’ cycle.
–Celebrated and recognised monthly nominees for the
a2 Legends awards acknowledging individuals and teams who
demonstrate company values and outstanding contribution
towards achievement of Company strategic priorities.
–Recognised the overall winner of the annual a2 Legend of
the Year award and four recipients of the annual B O L D
values awards.
–Continue to offer a Work from Anywhere policy, to support
all team members with leveraging additional flexible work
arrangements.
Recruitment
–Embedded talent acquisition partnership with an external
provider as an integrated talent function in the ANZ business.
–Updated Human Resources Information System (HRIS)
providing global data and reporting.
–Evolved the operating model and organisational design to
optimise delivery of our strategic objectives.
–Launched an online recruitment module at MVM and in the
China market to support a better candidate experience.
–Invested in talent acquisition of product development and
innovation skills, specifically in China and Supply Chain
teams, to strengthen internal capability to deliver on
Company growth objectives.
–Launched the Company’s corporate induction programme
in China.
Supporting a diverse and inclusive workplace
–Introduced gender neutral parental leave and enhanced
paid parental leave policy to 20 weeks.
–Launched Grandparents Leave, providing five days of
paid leave for the arrival of a new family member.
–Implemented eight weeks of additional paid parental leave
for multiple births (e.g. twins, triplets).
–Enhanced domestic violence/family violence policy to
include provision of pre-paid SIM card and emergency
accommodation assistance.
–Delivered unconscious bias training.
–Provided team members access to the Genea fertility
programme in Australia, which offers education, webinars,
podcast and complimentary/bulk billed health assessments.
–Continued to offer an additional five days of paid women’s
health leave.
–Partnered with an external provider to deliver a Menopause
at Work education session, providing an overview on what
is menopause and what are the symptoms, how it impacts
work and tips and guidance for navigating respectful
conversations about menopause in the workplace.
–Continued to offer an online platform to support team
members managing childcare and tutoring in New Zealand
and Australia.
–Continued to partner with Parents at Work, an external
provider supporting all team members in the areas of career,
carer responsibilities, family and wellbeing.
–Gender pay gap has been embedded into the Company’s
scorecard as a key performance indicator.
NEXT STEPS
–Continue to roll-out constructive leadership training
programme across the Company.
–Enhance current benefits to strengthen the Company’s
value proposition for a2MC team members and attract
future talent.
–Implement a new global online Workplace Health and
Safety Management System.
–Implement ‘B O L D leadership programme’ focusing on
‘leading self ’ and ‘leading others’.
–Launch enhanced Domestic and Family Violence policy,
dedicated intranet page, internal resources and education
and awareness learning module.
Progress towards our goals – People (continued)
26Corporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in reviewBuilding a sustainable growth business

Key metrics data
Gender (as at 30 June 2024)CohortMale%
3
Female%
3
Variance to
last year
3

(% of females)
Directors
1
6350%350%7%
Executive Leadership Team
1
10770%330%0%
People Leaders
2
1226755%5545%-1%
Remaining Team Members35116547%18653%0%
Total48824149%24751%0%
Age (as at 30 June 2024)Number%
3
Variance to last year (%)
3
Under 306113%1%
30 to 5031665%-2%
Over 5011123%2%
Total488100%
Tenure (as at 30 June 2024)Number%
3
Variance to last year (%)
3
0–2 Years20041%-6%
2–5 Years17235%-6%
5+ Years11624%12%
Total488100%
1 David Bortolussi has been included in both the Director and ELT calculation.
2 People Leaders are defined as any Team Member with direct reports.
3 All values subject to rounding.

The a2 Milk Company 2024 Annual Report 27

Progress towards our goals – People (continued)
Our ongoing commitment to Gender Pay Equality
The Company has confidence in its policies, benefits and practices that support and
promote gender equality. It adopts a holistic approach to diversity and inclusion in the
workplace driven by a strong belief that it drives better business outcomes and provides
a better experience for team members.
The Company is proud to have 50% representation of women
at the board level including its Chair. The Executive Leadership
Team (ELT) has 30% women and management continues to
work towards the goal of having at least 40% representation
of men and women across all levels in the organisation. The
Company acknowledges that it still has work to do in achieving
this objective and to significantly reduce its gender pay
gap over time.
a2MC has a gender neutral approach to pay across the
organisation and upholds equal pay as a core component of its
remuneration policy and compliance in the markets in which
it operates.
Focus areas to support Gender Pay Equality
The Company has prioritised three key areas to support its
gender pay equality objectives.
1. Talent Acquisition
Inclusion and diversity are areas of continued focus in the
attraction, development and retention of talent. a2MC has
taken various initiatives to improve outcomes in this area,
including:
–All roles are advertised internally to widen the pool of
candidates and to provide development opportunities to
existing team members.
–Specialised external software is used to attract diverse
candidates through gender neutral language in role
advertisements reducing gender bias in talent attraction.
–Talent acquisition teams are required to provide gender
balanced candidate short lists.
–For higher graded appointments, the Company ensures it
has a gender balanced interview panel with a senior female
executive.
–Unconscious Bias training is provided to all hiring leaders
to reduce unintended bias in the recruitment process.
–Talent management processes ensure that gender balance
is a consideration.
–The CEO and Chief People & Culture Officer review all senior
leadership appointments to ensure that a gender neutral
approach has been adopted.
2. Flexible and supportive Work Practices
All team members have access to flexible work and the
Company supports a hybrid work approach. The Company
believes that flexible working practices for parents and carers
is of particular importance. The Company also believes that
providing access to paid parental leave promotes wellbeing
benefits for families and the community more broadly. Many
new benefits have been introduced over the past couple of
years including:
–Enhanced parental leave policy to 20 weeks.
–Gender neutral parental leave, providing all permanent
employees (of any gender) who are welcoming the arrival
of a child to their family through pregnancy, adoption,
surrogacy, fostering or kinship arrangement, with 20 weeks
paid leave with no qualifying period and removal of the
primary and secondary carer labels. Gender neutral parental
leave is an important part of the Company’s approach to
gender equality in the workplace and helping take gender
bias out of parental leave.
–Multiple newborns parental leave (eight weeks additional
paid leave).
–Grandparents leave for the arrival of a new family member
(five days additional paid leave).
–Women’s health leave for team members experiencing
symptoms of endometriosis, peri-menopause or menopause
as well as those individuals undertaking fertility treatments,
including IVF (five days additional paid leave).
3. Remuneration framework
a2MC continues to undertake regular independent salary
reviews and equal pay validation. Over the past year the
Company engaged global consulting firm Korn Ferry to lead
an independent and extensive job grading process for all roles
in Australia across all job grades. The Korn Ferry Hay Group
Guide Chart-Profile Method of Job Evaluation is the most
widely accepted method worldwide. The Company utilises this
methodology annually during the annual salary review process
and ad-hoc reviews to verify job grades, market data and equal
pay. The Company has a long-standing partnership with Korn
Ferry, utilising their expertise to regularly review remuneration
ranges, benchmarking and job matching.
28Corporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in reviewBuilding a sustainable growth business

Gender Pay Gap calculations
While we have made progress in reducing our gender pay gap
from 2023 to 2024, the current gender pay gap indicates that
there is more that the Company can do. In February 2024,
the Company welcomed the publication of Australian gender
pay gaps by the Workplace Gender Equality Agency (WGEA)
Australia. Advancing gender equality across all workplaces and
global markets is consistent with a2MC’s values, policies and
commitment to equal pay and gender diversity.
Global Gender Pay Gap
1
FY24
2
FY23
2
Base salaryAverage20.8%28.2%
Median 11.8%17.1%
Total
remuneration
Average32.7%36.7%
Median11.0%22.2%
1 WGEA methodology used to calculate gender pay gap based on data
as at 31 March of each year.
2 a2MC engaged an independent accounting firm to assist with the
calculations based on a data set provided by the Company.
The gender pay gap is mainly due to fewer females in higher
graded roles and a lower proportion of men in lower graded
roles. A more balanced distribution of men and women at
all levels of the organisation will be needed to narrow and
ultimately eliminate the gap.
Australian Gender Pay Gap
1
FY24
2
FY23
2
Base salaryAverage26.6%36.0%
Median 19.9%43.8%
Total
remuneration
Average40.8%46.6%
Median 21.2%44.7%
1 WGEA methodology used to calculate gender pay gap based on data
as at 31 March of each year. 171 and 166 employees as at 31 March 2023
and 31 March 2024 respectively in line with WGEA reporting dates.
2 a2MC engaged an independent accounting firm to assist with the
calculations based on a data set provided by the Company.
Due to the relatively low number of total employees in
Australia, the gender pay gap calculations are sensitive
to small movements. Notwithstanding, the Company is
determined to make a difference in Australia and globally and
has included a continuous improvement goal in the Group
performance scorecard.
Whilst gender pay gap is an important insight into gender
equality at a point in time, it does not provide a complete
picture of a2MC’s commitment to it. The Company is proud
of its approach to diversity and inclusion, has market-leading
policies and is committed to continuous improvement in
closing its legacy gender pay gap and will continue to create a
great place to work that provides accessible opportunities for
all our team members to thrive.
The a2 Milk Company 2024 Annual Report 29

Human rights
The Company’s values and principles have an impact well beyond its own operations.
The Company believes in the vital role business plays in upholding human rights
and considers it a basic responsibility to ensure that individuals, communities and
the environment are treated with respect.
Anti-Modern Slavery
The Company is committed to high standards of responsible
conduct, social responsibility and sustainability in all
areas of the business, including operations and supply
chain. The Company’s commitment comes not just from an
acknowledgement that it is the right thing to do, but from
a recognition that the manner in which the Company and its
partners manage social, environmental and economic impacts
is critical to long-term success. The Company released its
fourth Modern Slavery Statement under the Australian Modern
Slavery Act in December 2023 which is available at
www.thea2milkcompany.com/ESG-reporting.
FY24 PROGRESS
–Revised employment model implemented by third-party
distributors for China-based full-time brand ambassadors to
provide social insurance and full-time employment benefits,
and reduce risk of exploitation.
–Online Modern Slavery Training module rolled out to all
employees globally, and targeted training provided to team
members working in key risk areas (procurement, farms
services and manufacturing).
–Adopted an anti-modern slavery remediation plan which
sets out the steps the Company is to take in the event it
discovers any modern slavery in its supply chain.
–Launched an anti-modern slavery supplier questionnaire,
with initial rollout to highest risk suppliers following
completion of supplier risk analysis.
–Updated farmer handbook for MVM milk suppliers with
further information about the Company’s expectations
regarding employment practices and modern slavery.
–Engaged a consultancy to conduct a refreshed risk
assessment and a gaps and opportunities analysis to
support longer term action planning.
–Continued to conduct further work across the Company’s
supply chain, with a focus on modern slavery risks across
both the Company’s own supply chain and indirect
operations.
NEXT STEPS
–Develop longer-term action plan following completion
of gaps and opportunities analysis.
–Analyse modern slavery risks with key suppliers’
supply chains and operations.
–Continue roll-out of anti-modern slavery supplier
questionnaire.
Promoting diversity and inclusion
As a diverse business with operations across four different
countries, the Company recognises the importance of fostering
a culture that promotes a respectful and diverse workplace.
Inclusion plan (NZ)
In New Zealand, the Company commenced its Māori cultural
journey, partnering with Tika Learning who delivered the
first of the cultural awareness and education sessions at the
Company’s Global Senior Leader’s Conference in June.
Reconciliation Action Plan (AU)
In Australia, the Company recognises the importance
of reconciliation between First Nations peoples and non-
indigenous peoples and in FY23 formally commenced its
reconciliation journey by committing to the Reconciliation
Action Plan (RAP) framework established
by Reconciliation Australia.
FY24 PROGRESS
–Commenced work towards establishing the Company’s
Māori inclusion plan in New Zealand.
–Established RAP working group across Australia.
–In Australia progressed deliverables against the Company’s
‘Reflect’ RAP in partnership with YarnnUp, an Aboriginal
advisory firm.
NEXT STEPS
–Roll out Māori culture education.
–In Australia, commence development of ‘Innovate’ RAP.
Progress towards our goals – People (continued)
30Corporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in reviewBuilding a sustainable growth business

Enriching communities
The Company recognises that it has a responsibility to support
and contribute to the communities in which it operates.
a2MC strives to make a difference by helping communities
thrive and by supporting organisations that are helping to
create a brighter future for children and families, and the
Company’s farming communities.
The Company has developed a community support framework
to guide how to engage, invest in, and give back to the
communities in which it operates, act on relevant social
issues, and contribute to other programmes that are aligned
to the Company’s purpose and which team members are
passionate about.
Support takes the form of funds and product donations to help
communities, as well investments of time from the Company’s
people to work directly with partner organisations.
FY24 PROGRESS
$2.97m
1
in product and cash donations, including:
Proactive partner organisation support
–KidsCan (New Zealand).
–Foodbank School Breakfast Program (Australia).
–Feed the Children (USA).
–Operation Smile (China).
–Cure Kids (New Zealand).
Event-based (or reactive) support
–Product donations for families affected
by Gansu earthquake (China).
Additional farming community specific
programmes and support
–a2™ Farm Sustainability Fund.
–Surfing for Farmers support.
–Bale Up Conference support.
–Dairy Women’s Network support.
1 Donations figure includes the cost value of donated products and any donation of cash (NZD) to communities, organisations, farmers and individuals.
The a2 Milk Company 2024 Annual Report 31

Progress towards our goals – People (continued)
KidsCan (New Zealand)
The Company is proud to partner with KidsCan, a New
Zealand based charity dedicated to helping children affected
by poverty.
a2MC is a major partner of KidsCan which helps to support
children experiencing hardship by providing food, jackets,
shoes and basic health products in partnership with schools
and early childhood centres nationwide.
The Company supports KidsCan’s belief that education is
a child’s ticket out of poverty. Recognising that children
struggle to learn when they are cold or hungry and providing
practical support can help to remove some of these barriers,
creating an opportunity for a better future.
The a2 Milk Company
is supporting
communities to thrive
Operation Smile (China)
About 25,000 babies born in China each year
suffer from cleft lip palate. While corrective
surgery can help to transform those children’s
lives, they cannot undergo surgery until they
achieve the requisite ‘health standard’, which
includes weight targets. The Company partnered
with Operation Smile during the year to provide
corrective surgery and nutrition products to 300
children suffering from cleft lip palate, before
and after their operations. With more than 6,000
medical volunteers from around the world,
Operation Smile is one of the world’s largest
volunteer-based not-for-profit organisations.
32Corporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in reviewBuilding a sustainable growth business

Cure Kids (New Zealand)
Cure Kids is the largest funder of child health research in New
Zealand after the government. The Company was proud to
support Cure Kids Professorial Chair, Andrew Day, in FY20 and
FY21 to research digestive health for children, with a special
focus on coeliac disease and irritable bowel disease. In FY24,
the Company also made a significant donation to Cure Kids’
Elliott Caughey Fund established to recognise the co-founders
of Cure Kids, emeritus Sir Bob Elliott and Dr Ron Caughey. This
contribution extends the Company’s longstanding support of
Cure Kids and will further enable crucial child health research.
Feed the Children (USA)
The Company partnered with Feed the Children in Colorado to
help provide struggling families the supplies they need to send
their children back to school with confidence. The ongoing
health and economic crisis continues to cause hardships for
children and their families and it’s estimated that one in five
children in the USA suffer from food insecurity. In FY24, the
Company donated funds to provide food and supplies for
school children, ensuring they have what they need to grow
and thrive.
Foodbank (Australia)
The Company has supported Foodbank with fresh milk product
donations in New South Wales and Victoria since 2015, scaling
up support in times of heightened need. In FY23, support was
increased by providing a cash donation to the Foodbank School
Breakfast Program. The Company also donated a2 Milk®
products to Foodbank through the National Donor Partnership.
The School Breakfast Program provides a healthy breakfast
for school children who would otherwise go without, and
delivers important benefits for students across a broad range
of physical and mental health outcomes, including energy
levels and concentration. In FY24 the Company was able to
support Foodbank through continued donations to provide
over 49 schools in some of Australia’s most remote Indigenous
communities with access to the School Breakfast Program.
The a2 Milk Company 2024 Annual Report 33

PLANET
Protect our planet and
cows, rethink packaging,
achieve net zero and
become nature positive.
SUSTAINABLE DEVELOPMENT GOALS
SDG 2: Zero hunger
Target 2.4
SDG 6: Clean water
and sanitation
Target 6.3 and 6.4
SDG 12: Responsible
consumption and production
Target 12.2
SDG 13: Climate action
Target 13.2
SDG 15: Life on land
Target 15.3
Progress towards our goals – Planet
Company disclosuresFinancial statementsCorporate governanceBuilding a sustainable growth businessCEO’s year in reviewChair’s letter34

Nature
As global understanding of nature-related impacts and
dependencies deepens, businesses are increasingly
recognising the critical role that nature plays in their
operations.
Within the agricultural sector, understanding the interconnected relationship
between nature, climate, and supply chain impacts, especially on-farm impacts,
is essential to effectively contributing to a sustainable future.
The natural environment plays an essential role in the production of a2 Milk™
products. The reliance on natural resources is driving an important shift in the
way that companies manage and assess the impact they have on the natural
environment.
The dairy sector has an extraordinary opportunity to lower its impact on the
natural environment. The Company recognises the interconnected nature
of these impacts and is committed to delivering a positive contribution to
biodiversity, water and soils. These are critically important issues to the
Company, its strategic partners, as well as governments and regulators in the
countries in which it operates.
The Company believes this will also become increasingly important as
consumers become more attuned to nature impact.
The Company acknowledges the work being undertaken with respect to the
Taskforce on Nature-related Financial Disclosures (TNFD) which is focused on
developing a risk management and disclosure framework for organisations to
report and act on evolving nature-related risks, with the aim of supporting a
shift in global financial flows away from nature-negative outcomes and toward
nature positive outcomes.
In a similar way to the Company voluntarily aligning its climate disclosures to
the Taskforce for Climate-related Financial Disclosures (TCFD), which included
reporting impacts for the first time in FY22, the Company will aim to align to the
Taskforce on Nature-related Financial Disclosures (TNFD) over time.
The Company has undertaken two nature risk and opportunity assessments
covering two regions in New Zealand, Canterbury and Southland, where the
largest A1 protein free milk pools supplying the Company are based.
These regions also represent a significant proportion of the Company’s supply
chain footprint, in particular from a production perspective.
These pilot assessments confirmed the need for the Company, with its strategic
partners and suppliers, to focus on the key risks and opportunities around:
–Water quality and use
–Soil quality
–Biodiversity
–Climate (as an element of nature)
The Company also has targets related to GHG emissions reductions, farm
environmental plans, animal welfare and sustainable packaging which the
Company believes will also contribute to nature positive outcomes. In reviewing
the Company’s supplier targets, the Company aligned to its primary IMF
manufacturer on nitrogen loss targets, an initial step towards introducing
nature-related targets. The Company is targeting a 45% reduction in nitrogen
loss to waterways per kilogram of milk solids by 2030 for farms in the
Canterbury region supplying milk for a2MC’s primary IMF manufacturer, from
a FY18 base year. The Company will consider both the Science Based Target
Network (SBTN) and the Science Based Target Initiative for Forest, Land and
Agriculture (SBTI FLAG) when setting additional nature targets.
PLANET SECTION
Nature P35
Climate P37
Thriving farms P40
Sustainable packaging P42
SUSTAINABLE PACKAGING
Meaningful progress against
sustainable
packaging
roadmap
FY24: Increased recycled content
in tertiary packaging and adopted
the ARL on fresh milk bottles in
Australia
GHG EMISSIONS
Meaningful progress against
Net Zero roadmap
FY24: 45% reduction in
Scope 1 & 2
1
emissions and
completion of methane inhibitor
feasibility study
MEDIUM-TERM
PLANET TARGETS
ANIMAL WELFARE AND FARM
ENVIRONMENTAL PLANS
100%
of certified farms supplying
raw A1 protein free milk to
have an upgraded animal
welfare programme and a farm
environmental plan in place by
the end of CY23
FY24: achieved target
1 Using the market based method of
calculation for Scope 2.
The a2 Milk Company 2024 Annual Report 35

Investing in planet leadership
Investing in planet leadership
Climate
30% reduction in Scope 3
emissions, on an intensity
basis by 2030
Scope 1 and 2 net zero by 2030
Scope 3 net zero  by 2040
Thriving farms
100% of certified farms
supplying raw A1 protein
free milk to have an
upgraded animal welfare
programme and a farm
environmental plan in place
Sustainable
packaging
100% reusable, recyclable,
or compostable packaging
Drive packaging recovery
through consumer education
50% average recycled content
included in packaging
Phase out of problematic
and unnecessary single-use
plastics packaging
Protect our
planet and cows
Programmes and
services to engage
with and support
farmers
Achieve Net
Zero
Reducing emissions
along the value chain
Rethinking
packaging
Enhancing recyclable
and reusable
packaging, while
increasing the use of
recycled materials
Contribute to
nature positive
Enhancing soil,
water quality and
biodiversity health
Collaborating with partners, processors, farmers and communities
Nature
45% reduction in nitrogen loss
to waterways per kilogram of
milk solids by 2030 for farms
in the Canterbury region
supplying milk for a2MC’s
IMF production, from a FY18
base year
DRIVING TOWARDS
a2MC’S PLANET
TARGETS AND
COMMITMENTS
FY24 PROGRESS
–Achieved the Company’s target of 100% of certified
farms supplying raw A1 protein free milk to have a farm
environmental plan in place by end of CY23.
–Advanced on-farm research in partnership with Lincoln
University, designed to strengthen on-farm resilience and
deliver positive environmental outcomes.
NEXT STEPS
–Continue progress towards aligning to and reporting against
the TNFD framework.
–Consider on-farm water, waste and biodiversity targets.
–Extend nature-related targets for other key risks and
opportunities and for additional operating regions.
Progress towards our goals – Planet (continued)
36Corporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in reviewBuilding a sustainable growth business

Climate
Climate change is driving significant structural
transformation across all sectors.
There will also be extraordinary opportunity for the agricultural sector to realise
increased productivity and efficiency through new technologies and practices that
lower emissions and environmental impact across the supply chain, including a
particular focus on on-farm emissions.
The Company has continued to evolve its alignment to external reporting
requirements and in FY24 has aligned with the Aotearoa New Zealand XRB Climate
Standards, as required (NZ CS 1, CS 2 and CS 3). In addition to XRB alignment,
the Company remains attuned to global sustainability efforts. The International
Sustainability Standards Board (ISSB) has been instrumental in shaping the landscape
of sustainability disclosures. Furthermore, the Australian Accounting Standards Board
(AASB) has released an exposure draft on climate reporting, proposing the Australian
Sustainability Reporting Standards (ASRS).
GHG emissions net zero roadmap and GHG inventory
The Company is targeting net zero for Scope 1 and 2 emissions by 2030 and has a
target to achieve net zero by 2040 for Scope 3. The Company has also introduced
an interim Scope 3 target to reduce Scope 3 GHG emissions by 30% per kilogram of
milk solids by 2030 from a FY21 base year.
The Company has continued to track against its net zero roadmap which illustrates
the Company’s net zero targets and how it plans to meet these targets over time.
The Company’s net zero roadmap is available on the Company’s website.
In addition to the roadmap, the Company has published a GHG inventory report which
shows the breakdown of Scope 1, 2 and 3 emissions. The purpose of the inventory
report is to provide transparency on the Company’s emissions profile as well as
communicate any estimation uncertainties and assumptions.
The GHG inventory report is available in the Company’s Climate Statement at
thea2milkcompany.com/ESG-reporting.
Net zero GHG
emissions
for Scope 1 and 2 by 2030
Net zero GHG
emissions
for Scope 3 by 2040
30% reduction
of Scope 3 emissions, per
kilogram of milk solids, by 2030
from a FY21 base year
CLIMATE TARGETS AND
COMMITMENTS
The a2 Milk Company 2024 Annual Report 37

GHG emissions reduction programme
Scope 1 and 2 emissions account for approximately 5% of the
Company’s total GHG emissions profile, with Scope 3 emissions
comprising the other 95%. The largest proportion of Scope 3
emissions is from on-farm activities.
Key metrics data (FY24)
1

GHG Emissions
2
FY24FY23FY22
Total GHG Emissions
3
453,953501,090516,345
Scope 113,41224,343 22,972
Scope 2 (Market based)
4
149153–
Scope 2 (Location based)
4
4,5073,356 3,221
Total Scope 3 440,392476,595490,153
On-farm (Scope 3)360,919374,168403,429
1 Numbers are subject to rounding.
2 Greenhouse gas emissions, calculated as tonnes of carbon dioxide
equivalent (tCO
2
e), have been estimated using considerations from
The GHG Protocol guidelines. Emissions and conversion factors were
sourced from the National Greenhouse Accounts Factors for Australia,
the New Zealand Ministry for the Environment for New Zealand
and a range of other country specific sources. Where required, non
direct emissions sources have been estimated using default and/or
extrapolated emissions intensity rates to provide a more complete
picture of the Company’s Scope 1, 2 and 3 emissions. Total emissions
calculations exclude packaging and non-milk raw ingredients.
Refer to the Company’s GHG inventory report for details on estimations
and assumptions used, which can be found in the Company’s Climate
Statement.
3 Total GHG emissions have been calculated using market based method
for Scope 2.
4 A location-based method reflects the average emissions intensity of
grids on which energy consumption occurs (using mostly grid-average
emission factor data). A market-based method reflects emissions
from electricity that companies have purposefully chosen. It derives
emission factors from contractual instruments, such as green energy
contracts.
FY24 PROGRESS
Scope 1: GHG emissions from direct operations
–Completed the installation of a high-pressure
electrode boiler at MVM to replace existing coal-
fired thermal heat generation system.
–Introduced electric vehicles to the Company’s fleet
vehicles, with remaining vehicles being hybrid.
Scope 2: GHG emissions from electricity operations
–Completed the full electrification of the MVM site
which includes converting MVM to 100% certified
renewable energy.*
–Continued to utilise green energy contracts at all
available sites.
Scope 3: Indirect GHG emissions
–Invested in AgriZero
NZ
, a partnership between
the New Zealand Government and major
agribusiness companies to reduce on-farm biogenic
methane and nitrous oxide emissions.
–Completed the Company’s first methane
inhibitor feasibility study on-farm.
–Continued research to support regenerative farming
practices through the partnership with Lincoln
University aimed at reducing GHG emissions.
Progress towards our goals – Planet (continued)
Mataura Valley Milk boiler upgrade
The new electric boiler installed at MVM in Southland is now fully operational, completing the plant’s conversion from
a coal-fired manufacturing process to one powered entirely by certified renewable electricity.* The boiler conversion
eliminates about 22,000 tonnes of CO
2
, which contributes to approximately 98% of the Company’s Scope 1 emissions on an
annual basis and establishes MVM as the first all-electric dairy factory in New Zealand.
The Company invested approximately $16 million into the boiler and site electrification project and received $5 million
co-investment from Energy Efficiency and Conservation Authority under the New Zealand’s Government Investment in
Decarbonising Industry fund.
* MVM purchases Meridian’s Certified Renewable Energy production values product to enable it to exclusively match the amount of electricity it uses
on an annual basis with an equivalent amount of electricity put into the national grid from one of Meridian’s hydro stations or wind farms (which have
been independently verified as producing 100% renewable electricity). Actual electricity received on location is from mixed renewable and fossil fuel
sources, due to the nature of the electricity transmission and distribution system.
38
Corporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in reviewBuilding a sustainable growth business

AgriZero
NZ
In FY24 the Company made an investment into AgriZero
NZ
,
a world-first partnership between the New Zealand
Government and other industry stakeholders aimed at
reducing enteric methane and nitrous oxide emissions.
The investment demonstrates the Company’s
commitment to supporting farmers to reduce on-farm
GHG emissions in New Zealand, and in meeting its
sustainability targets of becoming net zero by 2040 and
its interim target of reducing Scope 3 emissions by 30%,
on an intensity basis, by 2030.
Mitigating on-farm emissions presents a significant
challenge for the dairy industry and transitioning
to a lower-emissions future requires a systematic
change involving substantial investments in innovative
technologies and emission reduction strategies. Within
its supply chain, on-farm emissions account for roughly
75% of the Company’s total GHG emissions profile and
through investments such as AgriZero
NZ
combined with
other on-farm initiatives, the Company aims to drive
meaningful change across the agricultural sector to
support farmers and achieve its net zero targets.
Methane reduction
The Company has continued to focus on methane
reduction with the completion of its first feasibility
study in FY24. The study presented various challenges
throughout the period, providing opportunities for the
Company to work with farmers to navigate on-farm
hurdles to find solutions that are commercially viable and
outcomes that can be validated. This included investing
in on-farm infrastructure, methane emission data capture
software, animal health monitoring collars and providing
additional support where needed. The Company will
need to continue to work with farmers, processors and
feed suppliers to identify a range of methane reduction
products that are easily accessible, ensure animal
welfare, maintain the premium quality of products and
reduce Scope 3 emissions.
Environmental metrics
MetricFY24FY23Movement
Manufacturing Facilities
1

Total water usage (‘000 litres)314,071290,9088%
Water efficiency (litres/litre of milk)1.61.7-6%
Waste water diverted to beneficial land application (litres)1,133,9002,780,010 -59%
Waste to landfill (tonnes)68100 -32%
Recycling waste (tonnes)1,2252,683-54%
Total waste (tonnes)1,2942,776-53%
Waste diversion (recycled waste/total waste)94.7%96.7%-2%
Electricity consumption (kWh)
2
17,400,00016,700,000 4%
Electricity consumption – electrode boiler (kWh)
2
25,300,000–100%
Total electricity consumption (kWh)
2
42,600,00016,700,000155%
1 The table refers to operations at Smeaton Grange and MVM only.
2 This number has been rounded.
FY24 PROGRESS
Water usage and efficiency
–Water efficiency remains a priority for the Company’s
manufacturing facilities. Water usage is strongly
influenced by the product mix and given the changing
product mix at MVM, an increase in water usage is
expected, with water efficiency rates continuing to
align with prior years.
Waste, wastewater and waste diversion
–Waste reduction remains a top priority for both
MVM and Smeaton Grange. This commitment is
demonstrated in the overall decrease in landfill
waste and total waste. Due to MVM’s location,
traditional recycling methods are not always feasible.
In FY24 MVM implemented alternative recycling
solutions for waste materials which resulted in a 53%
reduction in overall waste and a 54% reduction in
recycling waste between FY23 and FY24.
–Wastewater diverted to beneficial land use
significantly decreased in FY24. This reduction is
attributed to a modification in the sludge treatment
process at MVM. Instead of being diverted back into
the land, the sludge is now repurposed into compost.
Energy consumption
–MVM and Smeaton Grange have continued to use
green energy contracts, with Smeaton Grange
producing energy through solar panels.
–In line with expectations, electricity at MVM
increased in FY24 due to the introduction of the
electrode boiler. The boiler utilises renewable energy
and will reduce the Company’s Scope 1 emissions by
approximately 98% in FY25.
The a2 Milk Company 2024 Annual Report 39

Thriving farms
Farmers play a vital role in the Company’s supply chain,
not only as suppliers of the precious milk source for
the Company’s products but also as stewards of the
environment and as vital contributors to local communities.
The Company is committed to working with and supporting farmers enabling them
to improve the impact on the environment. The work undertaken by the Company
to better understand its nature and climate risks and opportunities has highlighted
the need to take a holistic systems-based approach to regenerative agriculture to
be effective in driving towards nature positive outcomes, including net zero targets.
In FY24, the Company achieved its targets of 100% of certified farms supplying raw
A1 protein free milk to have a farm environmental plan in place and to be certified
under an upgraded animal welfare programme by the end of CY23. The Company
has continued to track and develop the roadmap to certification of supplier farms
to continue to meet this target.
The Company has developed and rolled out its farmer grants programmes, on-farm
measurement pilot studies, research partnerships, methane reduction research,
farmer education programmes, and crisis support.
Farm environmental plans
The Company has developed a global framework for farm environmental plans.
The principles of the framework address the most material aspects of environmental
management in the dairy industry:
–Lowering GHG emissions
–Managing water quality and efficiency
–Managing soil quality
–Boosting on-farm biodiversity
–Improving nutrient (effluent) management
FY24 PROGRESS
–Achieved the Company’s target of 100% of certified farms supplying raw A1 protein
free milk to have a farm environmental plan in place by end of CY23.
Animal welfare programme
Cow welfare is crucial for dairy production, and benefits both the animals and milk
production. High standards of cow welfare results in reduced stress, lower disease
risk, and improved overall wellbeing; leading to more productive, ethical and efficient
farming.
Best practice standards for animal welfare on farms is therefore central to the
responsible sourcing of A1 protein free milk, and the Company works with its suppliers
to support best practice though its animal welfare programme.
Progress towards our goals – Planet (continued)
100%
of certified farms supplying
raw A1 protein free milk to
have an upgraded animal
welfare programme and a farm
environmental plan in place by
the end of CY23
THRIVING FARMS TARGETS
AND COMMITMENTS
40Corporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in reviewBuilding a sustainable growth business

The programme meets globally recognised frameworks,
including the Five Domains Framework, which considers
both physical and mental aspects of wellbeing:
1. Nutrition
2. Physical Environment
3. Health
4. Behaviour
5. Mental or Affective State
a2MC supports farmers to implement its animal welfare
programme through training, milk monitoring, and
comprehensive audits. The Company encourages a continuous
improvement approach, supporting farmers to have best
practice standards for animal welfare through the upgraded
animal welfare programme.
FY24 PROGRESS
–Achieved the Company’s target of 100% of certified farms
supplying raw A1 protein free milk to have an upgraded
animal welfare programme and a farm environmental plan
in place by the end of CY23.
–Continued roll-out of training modules for auditors.
–Staged launch of upgraded animal welfare programme
across the Company’s regions.
–Successful roll-out of updated audit scope.
NEXT STEPS
–Progress towards global certification of the redefined
animal welfare programme.
–Invest in education and value-add initiatives for farmers.
Research studies, partnerships and
measurement
The Company is committed to supporting the dairy industry
by working with technology and solutions providers to tackle
some of the major issues in the industry. As noted in the
Climate section above, the Company has been actively involved
in methane reduction research. The Company is also seeking
to partner with research institutions on projects that will
advance science and technology solutions to contribute to
nature positive outcomes. Another of the major challenges in
agriculture is where the Company is investing time and resources
to advance the accurate measurement of on-farm data.
FY24 PROGRESS
–Completed first methane inhibitor feasibility
study in Victoria, Australia.
–Rolled out on-farm carbon audits across its certified farms.
–Progressed a research project with Lincoln
University aiming to enhance on-farm resilience
and deliver positive environmental outcomes.
NEXT STEPS
–Expand on completed methane reduction feasibility study
in Australia.
–Expand on measurement pilot studies in Australia and
New Zealand.
–Expand carbon audits to certified farms in North America.
–Continue to partner with research institutions on projects
that will advance science and technology solutions to
contribute to nature positive outcomes.
a2
TM
Farm Sustainability Fund
In FY24 the Company consolidated its farmer grants
programmes across New Zealand and Australia bringing them
together under the re-branded a2
TM
Farm Sustainability
Fund. Since its inception, the New Zealand and Australian
programmes have awarded over 65 projects, totaling more
than $2,170,000.
These programmes offer financial awards to contracted
A1 protein free dairy farms to support projects that
demonstrate an integrated approach to a sustainable future.
The Company has partnered with specialist agriculture
organisations across New Zealand and Australia, Lincoln
University and Landcare Australia respectively, to administer
the fund and support the assessment and progress of projects.
The programme allows eligible farms to apply for grants to fund
farming practices that align with the Company’s sustainability
objectives and one or more of its key environmental
improvement themes:
–Lowering greenhouse gas emissions
–Increasing on-farm carbon sequestration
–Improving farm system resilience
–Improving water quality and efficiency
–Enhancing on-farm biodiversity
–Improving animal wellbeing/health
–Managing and improving soil health
–Expanding blue/green infrastructure e.g. living things
(soil/trees/diverse pasture)
The programmes each have an investment committee
comprised of industry experts in regenerative agriculture, soil
health, animal health and wellbeing and farming systems who
evaluate and award funding for the received applications.
FY24 PROGRESS
Twenty-five awards totalling approximately $670,000 made
across New Zealand and Australia to farmers who were
successful in the 2024 round of the a2™ Farm Sustainability
Fund.
NEXT STEPS
–Continue to support the a2™ Farm Sustainability Fund
with a focus on sustainable farming practices.
–Identify additional measurement technologies.
The a2 Milk Company 2024 Annual Report 41

Sustainable packaging
Sustainable packaging is an important element of the
Company’s ambition to protect the planet.
The Company has designed its product packaging to protect the health and safety
of consumers and reduce food waste as a first priority. However, it recognises that
packaging, and related impacts such as litter, ocean waste, micro-plastics, use of
non-renewable materials and landfill, are issues of concern to a2MC consumers and
stakeholders, and is focused on designing recyclable and reusable packaging while
increasing the use of recycled materials in packaging, where it does not affect product
integrity and safety.
In Australia, the Company is a member of the Australian Packaging Covenant
Organisation (APCO) and has aligned to its 2025 National Packaging Targets, where
the industry is working together towards 100% recyclable, reusable or compostable
packaging, 70% recovery of plastic packaging, 50% average recycled content, the
phase out of single-use and problematic packaging, and the roll-out of consumer
educational logos on how to dispose of packaging.
The Company is taking a similar approach to sustainable packaging for products
sold in all markets, designing for recycling or reuse, applying relevant disposal and
recycling instructions, and working to increase the use of recycled content where
possible.
In April 2023 APCO announced a review of the National 2025 Packaging Targets
which indicated it is unlikely the targets will be met by the end of 2025 and a longer-
term vision is needed to guide action. a2MC remains committed to its sustainable
packaging targets and will adjust the timelines of its targets once further guidance
has been received, to ensure they remain aligned with industry standards and best
practices.
FY24 PROGRESS
–Actively participated in industry working groups for sustainable
packaging, enabling the Company to closely collaborate
with industry to navigate industry-wide challenges.
–Continued to review and progress against the Company’s sustainable
packaging roadmap.
–Submitted its third APCO Annual Report, maintaining a rating of ‘Leading’.
–Continued to investigate innovative packaging design for sustainable solutions.
NEXT STEPS
–Continue to execute against its sustainable packaging roadmap
and make progress against sustainable packaging targets.
–Incorporate 20% recycled content for HDPE in fresh milk bottles within Australia.
–Work with suppliers to increase recycled content in shippers and tin.
100%
reusable, recyclable,
or compostable packaging
Drive packaging
recovery
through consumer education
50%
average recycled content
included in packaging
Phase out
of problematic and unnecessary
single-  use plastics packaging
SUSTAINABLE PACKAGING
TARGETS AND COMMITMENTS
Progress towards our goals – Planet (continued)
42Corporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in reviewBuilding a sustainable growth business

Progress towards our goals (continued)
FY24 PROGRESS AGAINST TARGETS
TargetProgress
100% reusable, recyclable,
or compostable packaging
Fully recyclable packaging reduced from 87.1% in FY23 to 83.3%
1
in FY24. This
reduction was due to increased production of UHT and opaque PET products.
Alternative packaging solutions are being investigated; however, limited available
and viable solutions is making it challenging for the Company to convert all of its
packaging to fully recyclable materials.
Drive packaging
recovery through
consumer education
The Company will continue to apply appropriate disposal and recycling information
for consumers, including applying the Australasian Recycling Logo (ARL) to
packaging sold in the Australian market, where possible.
50% average
recycled content
The Company remains committed to achieving specific material targets in relation
to recycled content for its product range. Refer below for detail.
– 20% recycled
content for HDPE
The Company is on track to incorporate 20% recycled content for HDPE in fresh milk
bottles within Australia.
– 60% recycled
content for paper
The Company aims to have up to 100% recycled content for paper in all Australian
shippers. Collaborative efforts with the Company’s primary IMF manufacturer are
underway to increase the recycled content in New Zealand shippers.
– 35% recycled
content for metals
Despite ongoing challenges in validating recycled content in metal tins, the Company
is actively collaborating with industry partners and direct suppliers to address
this issue.
Phase out of problematic
and unnecessary single-
use plastics packaging
The Company has reviewed its products sold in Australia against APCO’s framework
for assessing problematic, unnecessary and single-use plastics and has determined
it does not have any packaging materials that meet the criteria to be phased out by
2025. The Company will continue to assess any new packaging materials added to
its product portfolio against this framework.
1 Total recyclability as a percentage assumes that all consumers dispose of packaging in line with recycling guidelines.
43The a2 Milk Company 2024 Annual Report

Progress towards our goals – Consumers
CONSUMERS
Bring the unique benefits
of pure and natural
a2 Milk™ to as many
consumers as possible.
SDG 12: Responsible
consumption and production
Target 12.5
SDG 3: Good health
and wellbeing
Target 3.4
SUSTAINABLE DEVELOPMENT GOALS
SDG 9: Industry, innovation
and infrastructure
Target 9.1
44Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review

Consumers
Bring the unique benefits of pure and natural a2 Milk™
to as many consumers as possible.
The Company’s trusted brand, its proprietary know-how and A2-type beta-
casein expertise are valuable assets. The Company is committed to ongoing
investment to maintain and sustainably grow these assets. In addition, the
Company is focused on responsibly marketing to consumers and delivering
products that are safe and of high-quality.
The Company’s premium brand is strengthening in awareness, penetration and
loyalty to varying levels across its key markets. It has increased its investment
to grow and protect its brand and its trade marks in all product categories
and regions.
Through ongoing investment into scientific research and development
programmes, the Company is deepening its expertise and advancing global
understanding of the potential health benefits of a2 Milk™. This science will
underpin the Company’s future product innovation, bringing the benefits of
a2 Milk™ to a broader audience of consumers.
There are four key focus areas to ensure the Company can continue to deliver
a targeted and differentiated brand proposition and product portfolio:
–Invest in science, nutrition and beta-casein education.
–Build and strengthen brand adoration.
–Create a distinctive product portfolio.
–Help consumers understand the benefits of a2 Milk™.
FY24 PROGRESS
–The Company increased marketing investment by 7.6% in FY24 primarily
reflecting a significant step-up in China above-the-line brand investment as
well as below the line activation in line with its growth strategy.
–The Company launched a refreshed visual identity for its brand that is now
being rolled out across categories, markets, and touch points.
–The Company’s product portfolio underwent considerable change in
FY24, with the evolution of existing products, introduction of several new
products such as a2 Gentle Gold
TM
and new fortified milk powder tubs, as
well as opening up new markets through geographic expansion.
CONSUMER SECTION
Tr ue a 2
TM
P46
Pioneering in science P47
Regional highlights P48
Product quality and
food safety P49
Responsible marketing P49
MARKETING INVESTMENT INCREASED
$ million
FYFYFY












USA ANZ China
UNPROMPTED BRAND
AWARENESS IN CHINA
>25%
FY24: 25%, FY23: 23%
CHINA LABEL IMF
MARKET SHARE IN CHINA
≥5%
FY24: 4.9%, FY23: 3.9%
ENGLISH LABEL IMF
MARKET SHARE IN CHINA
≥25%
FY24: 20.2%, FY23: 19.0%
SALE OF OTHER
NUTRITIONALS IN CHINA
>$200m
FY24: $110m, FY23: $80m
SAMR REGISTERED CHINA
LABEL PRODUCTS
≥3
Following FY24, a2MC expects to
access an additional registration
slot at Synlait’s Dunsandel plant
MEDIUM-TERM
CONSUMER TARGETS
15.9%16.4%16.7%
% sales
The a2 Milk Company 2024 Annual Report 45

Progress towards our goals – Consumers (continued)
Tr u e a 2 ™ represents our promise of exceptional quality
True a2™ is our promise of exceptional quality, representing our commitment
to uncompromising care, and creating products of genuine quality. Our unique
True a2™ ecosystem ensures that from our farms all the way to families, the finest
a2™ products reach consumers in premium quality condition. Leveraging over
20 years of pioneering experience and expertise, as well as established partnerships
with leading industry specialists, True a2™ consists of five critical elements:
Pioneering science
Ever since 2000 when the pioneering
work of our founders unlocked the
natural wonder of a2 Milk™, The
a2MC has been dedicated to sharing
this discovery with the world.
Focused exclusively on products
made with a2 Milk™, a2MC has built
an unrivalled understanding of A1
and A2-type beta-casein proteins
and has been granted over 70 related
patents over two decades.
Dedicated farms
The a2™ brand was born on the
pristine plains of New Zealand’s
finest dairy regions. So wherever
in the world you find our True a2™
products, we’ve stayed true to the
richness and purity of our homeland.
We are proud to work with a team
of dedicated, passionate farmers
to source our pure and natural
a2 Milk™.
Specially selected cows
At a2MC, we are extremely particular
about our cows and how they are
cared for.
a2MC’s world-class animal welfare
programmes are verified by leading
independent experts.
Rigorous identification, segregation
and tracking ensure our cows
naturally produce milk with only
A2-type protein and no A1,
safeguarding the integrity and purity
of the milk – all the way from cow
to cup.
World-class processing
a2™ products are manufactured
only at modern production facilities
with the highest quality standards
leveraging our established
relationships with trusted partners
throughout our supply chain
network.
Passionate experts combine
advanced technology with
uncompromising care to deliver
products of exceptional quality.
Advanced testing and tracking
Nothing is more important to us than the safety and integrity of
our products. That’s why quality testing is an integral part of the
manufacturing process.
We adhere to strict standards of rigorous testing throughout the entire
production process, as well as meticulous batch tracking across our
product range to provide consumers with the highest levels of confidence.
In addition, a multi-layered tracking program on our IMF range provides
an additional layer of confidence in the authenticity and provenance of
our products.
46Corporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in reviewBuilding a sustainable growth business

Pioneering in science
Invest in science, nutrition and A1 protein free science education.
As a pioneer of A1 protein free science, the Company is also the
custodian of the category. The Company’s science priorities
have always aligned with its business strategy, and most
importantly, its consumer needs.
Science, and the more recently created nutrition function,
are enablers to support growth and delivery of key strategic
priorities, and decrease risk to the business. The Company is
increasing its investment in strengthening its global leadership
in A1/A2 beta-casein research. Key strategic priorities include:
–Continue to strengthen the evidence supporting digestive
and broader gut health benefits of a2 Milk™.
–Expand research to explore the immune and cognitive
benefits of a2 Milk™.
–Expand on research across different life-stages.
With research being undertaken in China, ANZ and the
USA, and with the integration of the science and nutrition
functions, a2MC will expand its scientific credibility, knowledge
and understanding of the A1/A2 protein science, enabling
communication on science, nutrition and innovation.
Building brand equity
The Company is committed to increasing marketing investment
levels to improve brand equity in its key markets of China, ANZ
and the USA. The Company targets consumers who experience
perceived discomfort consuming products that contain A1 beta-
casein protein as well as progressive and health-conscious
consumers who are drawn to the differentiated and quality
proposition that a2MC delivers.
When targeting consumers who would otherwise limit their
consumption of dairy products or avoid them altogether, the
Company’s marketing approach emphasises the potential
health and wellbeing benefits of its branded products.
a2MC aims to welcome these consumers back to milk. Many
consumers and healthcare professionals report that people
who experience digestive issues drinking ordinary cows’ milk
may experience benefits when they switch to a2 Milk™.
Innovation
The Company is committed to innovation and continuing the
growth of its distinctive product portfolio. The Company’s
product portfolio is based around the benefits of a2 Milk™
and is divided into three core categories. Having established
a strong core product range, the Company is committed to
continuing to grow its premium portfolio through innovation.
The Company’s approach to growing and innovating its
products varies within each market in which it operates –
adapting to local consumer preferences, category nuances,
channel dynamics, regulatory requirements and overall
category maturity.
The a2
TM
Difference
Dairy is great, A1 protein free is better, a2
TM
is best
At The a2 Milk Company we believe in the power of dairy, and delicious and nutritious milk
is dairy at its simple, natural best – foundational nutrition packed with a range of nutrients
essential for a healthy life whatever your life stage.
But we have also always known that not all milk is the same, and dairy can be done better.
Sourced exclusively from cows specially selected to naturally produce milk with only
A2-type protein and no A1, a2 Milk
TM
is naturally
free from A1 protein.
Ever since the pioneering science of our founders
unlocked the natural wonder of A1 protein free
milk, The a2 Milk Company has been exclusively
dedicated to sharing these benefits with the world.
The a2 Milk Company 2024 Annual Report 47

Progress towards our goals – Consumers (continued)
ANZ
–Brand relaunch with new impactful pack design and fresh milk Tough Tummies campaign delivered significant lifts in
spontaneous awareness, NPS and brand advocacy.
–Upweighted digital campaigns and publisher partnerships increasing awareness of A1 protein free benefit.
–Enhanced retailer programmes driving stronger conversion in store and online.
–Significant investment supporting a2 Milk
®
Lactose Free delivering 17% share.
–Launched four new products across portfolio, increasing access and value for a2 Milk™ shoppers.
–Increased household penetration and achieved #1 Fresh Milk brand in retail for first time.
–Largest media investment in the Australian fresh milk category.
Regional highlights
China
–Launched upgraded GB registered China label IMF
product, exceeding expectations. This achievement
was supported by a large-scale integrated marketing
campaign.
–Achieved growth in IMF sales during the new
GB transition period.
–Continued to reach new highs in brand health metrics,
particularly in awareness among pregnant and early
stage users and in lower tier cities with a strong
consumer value proposition.
–Increased offline distribution in lower tier cities, with
a more integrated approach to new user recruitment.
–Delivered strong growth across Fresh Milk, UHT and
Adult Milk Powder categories.
USA
–Successfully launched a2 Platinum
®
IMF in the USA with
an offline regional test and nationally available online.
–Continued to progress long-term FDA approval.
–Continued to focus on building awareness for the benefits
of A1 protein free milk and driving consumer trial for the
a2 Milk™ portfolio of products.
International
–Launched new EL IMF Product a2 Gentle Gold™,
in Australia and selected channels in China.
–Launched a2™ Immune and a2™ Move nutritional
milk powders, products with distinct functional
benefits, targeting the unmet needs of the young
adult market.
–Strong growth in other nutritionals through new tub
products launched in the prior year.
–a2 Platinum
®
Toddler Milk continued to be highly
rated by parents and was a productreview.com.au
2024 award winner in the baby formula category.
–Engaged Daigou with a range of initiatives including
hosting Alibaba Expo events to amplify brand
presence, providing marketing materials to increase
share of voice, and introducing a mini-app to
incentivise support for a2
TM
brands.
48Corporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in reviewBuilding a sustainable growth business

Product quality and food safety
The Company is committed to the highest standards of product
quality and food safety, especially given a large proportion
of its products are consumed by infants, young children and
pregnant women. The Company has significant proprietary
knowledge and quality processes to deliver products that
achieve these standards, as well as compliance with other
market regulations and requirements.
This commitment is supported by:
–A comprehensive and unique focus on A1/A2 beta-casein
protein segregation and testing from farm to finished
product.
–A priority focus on food safety and quality management
audited by accredited third-party verification agencies for
both self-owned and third-party manufacturing sites.
–Long-term partnerships with high quality third-party
manufacturers who share the Company’s focus and ambition
on social responsibility.
–Relevant industry certifications including ISO 9001
(IMF), SQF and BRC (GFSI recognised certification) at all
processing facilities.
–China Organic (COFCC) Certification for a2 Milk™ Instant
Whole Milk Powder and a2 Milk™ Whole Milk Powder
products, manufactured at MVM.
–Ongoing monitoring and compliance with relevant regulatory
requirements in the markets in which the Company
operates.
–Investment in people and training to ensure capability to
meet product quality and food safety standards.
Responsible marketing
The Company’s approach to marketing infant nutrition aligns
to the core principle of supporting breastfeeding as the
primary form of infant nutrition. The Company has developed
a premium, high-quality range of infant nutrition products
to provide parents an alternative when breastfeeding is not
an option.
The Company complies with local best practice in each of its
active markets with respect to the marketing of IMF products.
Marketing in Australia of Infant Formula (MAIF) and
Infant Nutrition Council
The Company is a signatory to the MAIF Agreement and a
member of the Infant Nutrition Council, which represents
the major manufacturers and marketers of infant nutrition
in Australia and New Zealand. All members abide by a Code
of Conduct including the MAIF Agreement and The Infant
Nutrition Council Code of Practice for the Marketing of Infant
Nutrition in New Zealand.
The a2 Milk Company 2024 Annual Report 49

Progress towards our goals – Shareholders (continued)
SHAREHOLDERS
Create long-term, enduring value for
shareholders and maintain a trusted,
transparent relationship.
SDG 8: Decent work
and economic growth
Target 8.2
SUSTAINABLE DEVELOPMENT GOALS
Progress towards our goals – Shareholders
50Building a sustainable growth businessCorporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in review

Shareholders
Delivering on the Company’s medium-term financial targets or ambition
requires a compelling growth strategy, underpinned by strong operational
performance and supported by a robust capital management framework. A
focus on execution and close management of business risks and opportunities
are also critical to delivering successful outcomes.
The Company’s strong balance sheet provides it with the flexibility to respond
to risks and opportunities in pursuit of long-term value creation in line with
the Company’s strategic objectives.
The Company continues to strengthen its strategic partnerships to support
its next phase of growth. Its strategic partners provide a range of benefits
including manufacturing capability, market access support, distribution and
logistics services, and consumer and regulatory insights.
Maintaining transparency with the Company’s shareholders ensures they
are informed, and updated with the Company’s strategic priorities and
execution progress. The Company continues to provide more information
through its approach to integrated reporting and a variety of reporting
frameworks including New Zealand’s External Reporting Board (XRB),
the International Sustainability Standards Board (ISSB), the Taskforce for
Nature-related Financial Disclosures, Sustainability Accounting Standards
Board (SASB) and Global Reporting Initiative (GRI).
In FY24 the Company made meaningful progress against its medium-term
financial ambitions, with strong growth in revenue and earnings, and is
well positioned for further growth in a challenging market.
Strong financial performance since FY21
As part of its growth strategy, a2MC has defined its medium-term financial
ambition to grow revenue from $1.2 billion in FY21 to approximately
$2 billion by FY27 or later, and to target EBITDA margins in the ‘teens’.
Since FY21, a2MC has achieved strong growth in revenue and EBITDA of
38.8% and 89.9% respectively. This represents an incremental revenue
uplift of $469 million and EBITDA margin uplift of 3.8ppts as well as a
compound annual growth rate of 11.6% for revenue and 23.8% for EBITDA.
The Company has also delivered an earnings per share (on a diluted basis)
compound annual growth rate of 28.5%.
In FY24 the Company made meaningful progress against its medium-term
financial ambitions, with strong growth in revenue and earnings, and is
well positioned for further growth in the future. A detailed overview of
the Group financial performance for FY24 is provided in the CEO’s year in
review section (refer to page 5 to 13).
Capital allocation to drive growth
The Company’s capital allocation framework prioritises investment in growth
initiatives ahead of returning capital to shareholders.
There are several critical elements to be considered as part of a2MC’s capital
framework which is summarised in the image on the following page.
The Company’s capital allocation framework is continually reviewed by
management and the Board.
MEDIUM-TERM
SHAREHOLDER TARGETS
OTHER METRICS
REVENUE GROWTH
~$2 billion
revenue
by FY27 or later
FY21 to FY24: 11.6% CAGR
EBITDA MARGIN
EBITDA %
in the teens with year
on year improvement
FY24: 14.0%, FY23: 13.8%
EARNINGS PER SHARE
(EPS) GROWTH
>10% EPS growth
per annum
FY21 to FY24: 28.5% CAGR
+32.7%
Closing share price growth
57.9%
Return on capital
employed (ROCE)
1
1. ROCE is defined as EBIT/Capital
Employed. Capital Employed is
calculated as total assets less current
liabilities and cash and term deposits.
The a2 Milk Company 2024 Annual Report 51

Capital management
The Group’s objective when managing its capital is to safeguard
the Group’s ability to continue as a going concern and to continue
to generate value for stakeholders. The Group is not subject to
externally imposed capital requirements, and currently has no
debt, however holds a facility specific to Mataura Valley Milk
Limited which is undrawn at 30 June 2024 (refer to Note D6).
The Group’s capital structure may be modified by payment of
dividends to shareholders, returning capital to shareholders, or
issuing new shares. The Board continuously assesses its capital
position in order to deliver the optimum structure to drive
shareholder returns in line with the Company’s strategy and
capital allocation framework.
Consistent with the Company’s capital allocation framework,
priority is being given to transforming and de-risking a2MC’s
supply chain to enable future growth focused on investment
in New Zealand and China. Once the Company’s supply chain
transformation is further developed and other investment
opportunities are considered, to the extent there is a capital
surplus to achieving a2MC’s priorities, the Board will make a
disciplined assessment of the potential to return capital to
shareholders and the most appropriate option to do so.
Strategic partnerships and supply
chain investments
The Company has built its foundations with a number of key
partnerships. Each partner brings different strengths that
enable the Company to execute against its strategic objectives.
In particular, its strategic partnerships with China National
Agriculture Development Group, China State Farm Agribusiness
and China Animal Husbandry Group provide invaluable insights
and assistance in understanding the trade and regulatory
environment in China. a2MC also has supply and other
relationships with Synlait, MVM, New Zealand New Milk,
Yashili NZ and Fonterra.
China National Agriculture Development
Group Co., Ltd.
China National Agriculture Development Group Co., Ltd.
(CNADC) is a leading State-Owned Enterprise (SOE) and offers
comprehensive agricultural services in mainland China. CNADC
is responsible for meeting China’s agricultural needs with
17 wholly-owned or share-controlled subsidiaries, and three
publicly listed companies. CNADC’s knowledge of the Chinese
market and its ownership of China State Farm Agribusiness
and China Animal Husbandry Group positions it as a strong
strategic partner for a2MC for the long-term.
China State Farm Agribusiness
China State Farm Agribusiness Holding Shanghai Co., Ltd
(CSFA) is an SOE and became the Company’s exclusive logistics
and distribution partner for IMF products in China in 2013. CSFA
is the exclusive import agent for the Company’s China label IMF
products with 112 active IMF distributors and approximately
105 UHT and milk powder distributors throughout the country.
The Company’s agreement with CSFA is for a term of five years
from 1 October 2022 in addition to a longer term strategic
co-operation agreement. CSFA’s China expertise is of significant
value to a2MC in managing its operations effectively.
China Animal Husbandry Group
China Animal Husbandry Group (CAHG) is an SOE and became
a strategic partner when the Company purchased 75% of MVM
in 2021. CAHG holds 25% of MVM and is also owned by CNADC.
The partnership with CAHG provides the opportunity to build
and enhance the Company’s relationships with key partners
in China.
Capital allocation framework
Investment
Excess capital
Grow core business in existing markets
–Invest in building core business, including brand,
product innovation and channel development
–Develop execution capability through investing
in talent, systems, quality, safety, infrastructure
and partnerships
–Transform supply chain and existing market access
–Assess M&A opportunities to support core
business growth and supply chain transformation
Expand the boundaries
–Expand in existing markets
with new product categories
–Leverage existing products
into new markets
–Assess M&A opportunities to
expand boundaries
Balance sheet strength and
flexibility
–Support business growth
and risk management
initiatives
–Maintain a conservative cash
reserve to manage in an
uncertain environment
Available capital and operating cash flow
Shareholder returns
52
Corporate governanceFinancial statementsCompany disclosuresChair’s letterCEO’s year in reviewBuilding a sustainable growth business