A2 Milk China label sales drop 14%

• The a2 Milk Company reported a 14% drop in preliminary fiscal year 2026 China label formula sales.
• The company's share price closed higher at $7.62 following the supply chain update.
• Management is launching sales and marketing initiatives to recover lost market share after resolving major logistics bottlenecks.

The a2 Milk Company (ASX:A2M) reported that preliminary fiscal year 2026 China label sales declined 14%.

The downturn followed fourth-quarter product shortfalls that disrupted formula availability at Chinese distributors and retail stores.

Freight challenges, customs delays, and a production backlog at Synlait caused these distribution issues.

The company stated that alternative brands attracted customers who encountered these product availability constraints.

The business is now focused on marketing initiatives to encourage previous customers to return to its brand.

Following the announcement the The a2 Milk Company share price was up at $7.62.

Other product categories, including English label formula and liquid milk, recorded sales growth over the same period.