The a2 Milk Company (NZE:ATM, ASX:A2M) upgraded its fiscal 2025 year-on-year revenue growth guidance to "mid to high single-digit revenue growth" from "mid single-digit growth," according to a Friday filing with the Australian bourse.
The company attributed the revised outlook to a significant increase in Mataura Valley Milk external ingredient sales, the filing said. It still expects earnings before interest, taxes, depreciation, and amortization margin for the period to be broadly in line with the prior year.
a2 Milk also disclosed a target payout ratio of between 60% and 80% of net profit after tax excluding non-recurring and other items (normalized NPAT), marking its first-ever dividend. This new dividend policy will be implemented immediately, with the first interim payout declared in February 2025. The dividend for this period will be based on the company's first-half results being 60% of normalized NPAT, the filing stated.
The dairy company's Kiwi shares soared past 17% in recent Friday trade.
Price (AUD): $6.25, Change: $+0.92, Percent Change: +17.26%
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