Should I buy A2 Milk Company stock in 2025?
Is A2 Milk Company stock a buy right now?
ScoreA2 Milk Company Limited (ASX: A2M, NZX: ATM) remains a central name in the Australasian consumer staples landscape, known for driving innovation in dairy through its unique, A2 protein-only product range. As of 30 May 2025, shares trade around NZD 8.83 on the NZX, backed by an average daily volume of 2.76 million shares, highlighting persistent investor engagement. Over the past six months, the stock has rallied nearly 45%, reflecting both business momentum and constructive market sentiment. Recent milestones—including the company’s first-ever dividend announcement and an upward revision in FY25 revenue guidance—point to rising financial maturity and earnings confidence. Strategic moves, such as an expanded product suite targeting both children and seniors in China and a contract extension with Synlait, increase the company’s growth optionality in key Asian markets. While the current RSI signals neutrality, longer-term technicals indicate firm underlying support. Sector-wide, defensive consumer brands with demonstrated pricing power and export orientation have attracted renewed attention in the current macro environment. The consensus among 33 national and international financial institutions currently places the 12-month target price at approximately NZD 11.50. In sum, A2 Milk’s clear market position, robust expansion strategies and recent shareholder returns make it a strong candidate for closer consideration by local investors.
- ✅Strong top-line and bottom-line growth reported in the latest results.
- ✅Leader in A2 protein innovation with a recognised, premium brand.
- ✅Expanding into high-growth, demographically attractive Chinese segments.
- ✅Low share price volatility and robust institutional ownership.
- ✅First dividend declared, signalling a new phase of financial maturity.
- ❌High exposure to shifting Chinese regulatory and demographic dynamics.
- ❌Short-term technical indicators are mixed despite strong long-term momentum.
Score- ✅Strong top-line and bottom-line growth reported in the latest results.
- ✅Leader in A2 protein innovation with a recognised, premium brand.
- ✅Expanding into high-growth, demographically attractive Chinese segments.
- ✅Low share price volatility and robust institutional ownership.
- ✅First dividend declared, signalling a new phase of financial maturity.
Is A2 Milk Company stock a buy right now?
- ✅Strong top-line and bottom-line growth reported in the latest results.
- ✅Leader in A2 protein innovation with a recognised, premium brand.
- ✅Expanding into high-growth, demographically attractive Chinese segments.
- ✅Low share price volatility and robust institutional ownership.
- ✅First dividend declared, signalling a new phase of financial maturity.
- ❌High exposure to shifting Chinese regulatory and demographic dynamics.
- ❌Short-term technical indicators are mixed despite strong long-term momentum.
Score- ✅Strong top-line and bottom-line growth reported in the latest results.
- ✅Leader in A2 protein innovation with a recognised, premium brand.
- ✅Expanding into high-growth, demographically attractive Chinese segments.
- ✅Low share price volatility and robust institutional ownership.
- ✅First dividend declared, signalling a new phase of financial maturity.
- What is the A2 Milk Company?
- How much is the A2 Milk Company stock?
- Our full analysis on the A2 Milk Company stock
- How to buy The A2 Milk Company stock in New Zealand?
- Our 7 tips for buying A2 Milk Company stock
- The latest news about the A2 Milk Company
- FAQ
- On the same topic
What is the A2 Milk Company?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | New Zealand / Australia | Originating in NZ, A2 Milk is dual listed and operates across ANZ and China. |
| 💼 Market | ASX (A2M), NZX (ATM) | Listed on both Australian and NZ exchanges, ensuring broad accessibility for local investors. |
| 🏛️ ISIN code | NZATME0002S8 | Unique identifier for the company's shares; necessary for trading and record-keeping. |
| 👤 CEO | David Bortolussi | CEO since February 2021; led recent strategic expansion and profitable growth phases. |
| 🏢 Market cap | 6.03 billion AUD | Considered a large-cap in the NZ/ANZ context; reflects strong investor confidence. |
| 📈 Revenue | 1.67 billion NZD (FY24, +5.17% vs. 2023) | Solid top-line growth showcases effective market positioning and product demand. |
| 💹 EBITDA | Up 5% (1H25, vs. previous period) | EBITDA growth reflects operational improvements and resilience in margins. |
| 📊 P/E Ratio (Price/Earnings) | 37.86 (TTM) | High ratio shows strong growth expectations, but also signals premium valuation risk. |
How much is the A2 Milk Company stock?
The price of A2 Milk Company stock is rising this week. Currently trading at 8.83 NZD on the NZX, the share has gained 3.35% in the past 24 hours and is up 1.83% over the week. Market capitalisation stands at 6.03 billion AUD, with an average three-month daily volume of 2.76 million shares. The P/E ratio is 37.86, the newly announced dividend yield is 1.63%, and the stock displays low volatility with a beta of 0.28. This stability, along with positive earnings momentum, makes A2 Milk an appealing choice for investors seeking growth with moderate risk.
Check out New Zealand's best brokers!Compare brokersOur full analysis on the A2 Milk Company stock
Having thoroughly analysed A2 Milk Company’s latest financial statements and its stock performance over the past three years, we have employed our proprietary multi-factor algorithms—drawing from encompassing sources, including financial results, technical signals, and peer benchmarking. The outcome is a clear, data-driven insight into one of New Zealand’s most closely watched consumer staples companies. So, why might A2 Milk Company stock once again become a strategic entry point into the global branded dairy sector in 2025?
Recent performance and market context
In the first half of 2025, A2 Milk Company (ASX: A2M, NZX: ATM) has stood out among regional equities. As of 30 May 2025, the stock trades at NZ$8.83 (AU$8.33), reflecting a year-to-date surge of +44.87% over six months and +20.2% on the year—a testament to robust underlying business performance and growing investor confidence. The intraday rise of +3.35% signals recent momentum reinforced by trading activity.
This impressive uplift follows a sequence of high-profile corporate developments:
- Declaration of the company's inaugural dividend in February 2025 (1.63% yield), signifying financial discipline and maturity.
- Upward revision of full-year revenue forecasts, outperforming market consensus and establishing a higher baseline for future growth.
- Restoration of peace and renewed collaboration with Synlait, A2’s key supply partner, removing a long-cited strategic bottleneck.
- Strategic expansion into rapidly growing segments—notably, tailored nutritional products for children and seniors, especially within China and wider Asia.
From a macro perspective, the packaged food and consumer defensive sectors remain favoured safe-haven plays in an environment characterised by moderate inflation, demographic shifts, and an ongoing flight to quality. A2’s core strengths—brand trust, product portfolio resilience, and geographic reach—are amplified by the persistent demand for premium, health-forward staples in Asia and Australasia.
Technical analysis
A2 Milk Company’s current technical landscape supports the bullish thesis for the stock, with several favourable indicators visible:
- Relative Strength Index (RSI) at 45.2 lies comfortably within neutral territory, avoiding the risk of short-term overextension and indicating room for further uptrend resumption.
- MACD (<0.01) has just triggered a fresh buy signal, suggesting the potential for additional accumulation from technical traders.
- Moving averages: While the 20-day (AU$8.30) and 50-day (AU$8.19) averages signal a shallow near-term pullback, the longer-term 100-day (AU$7.37) and 200-day (AU$6.52) moving averages remain firmly bullish. The price is well above both, reflecting a persistent and strengthening upward trend.
- Key supports have emerged around AU$8.01–8.15, with price action consistently defending these levels in recent weeks.
- Short-term resistance at AU$8.29 is under pressure; a convincing breakout above this threshold could catalyse another leg higher toward AU$8.45 and potentially new multi-year highs.
- The formation of a support base at the 50-day moving average in May 2025 confirms market resolve to defend against volatility, bolstering the technical case for an upward move.
Altogether, the technical structure indicates a share consolidating at higher levels, but with building medium-term momentum that seems likely to accelerate upon clear upside breakout.
Fundamental analysis
A2 Milk Company’s fundamentals remain exceptionally attractive for investors seeking exposure to both organic growth and defensive qualities:
Revenue and profit growth:
- FY24 saw revenue rise 5.2% year-on-year to NZ$1.67 billion, notably outpacing peers in the competitive dairy sector.
- Net profit advanced 7.7% to NZ$167.6 million in FY24, accelerating further in 1H25 with +10% revenue and +6.9% net profit growth versus prior-year periods.
Operating earnings (EBITDA) expanded 5% in the latest half-year, with results “above expectations” and prompting upward annual forecast revisions. This pattern underscores strong operational execution.
Attractive valuation metrics compared with quality-growth peers:
- A price-to-earnings (P/E) multiple of 37.9x, while above the sector average, appears justified considering double-digit projected EPS growth and the high EBIT margin.
- The dividend yield, though modest at 1.63%, marks a structural step—the company’s first ever distribution—which typically signals both balance sheet health and maturing capital allocation policies.
- A low beta (0.28) further underpins the share’s defensive attributes; the stock typically exhibits less volatility than the broader market, an advantage in periods of macro uncertainty.
Structural strengths:
- Unique product positioning: A2 is the recognised international leader in A2 protein-only milk and infant formula—a segment with high barriers to entry and embedded consumer trust.
- Brand strength and innovation: The “a2 Milk” and “a2 Platinum” brands are synonymous with quality in Asia-Pacific, with a loyal following among health-conscious families.
- Strategic expansion: Recent moves into adult and senior nutrition, particularly in China, address a persistent demographic shift and diversify risk away from volatile birth rates.
Market share growth: A2 maintains dominant share across Australasia and has established a solid beachhead in China’s premium dairy segment, with uncorrelated product innovation cycles relative to traditional dairy peers.
Volume and liquidity
The market’s conviction in A2’s potential is reflected in consistently robust trading activity:
- Average daily volume over the past three months stands at 2.76 million shares, ensuring prime liquidity for both institutional and retail investors.
- A market cap of AU$6.03 billion elevates A2 Milk to the ranks of New Zealand’s most significant listed companies, facilitating inclusion in major indices and broad-based funds.
- 54% institutional ownership is an additional vote of confidence; active participation from professional investors tends to underpin valuation resilience on both upward and downward adjustments.
- The free float remains sufficiently large and diversified to accommodate shifts in demand yet small enough to maintain valuation momentum when sentiment turns bullish.
Catalysts and positive outlook
Several tangible growth catalysts position A2 Milk for sustained outperformance through 2025 and beyond:
- New product launches—notably tailored formulations for children and seniors in China—tap directly into two of the world’s fastest-growing consumer nutrition markets, supported by harmonised regulatory approvals and rising health awareness.
- Strategic peace accord with Synlait presents major supply chain de-risking and supports higher manufacturing profits, following several years of headline uncertainty. This consolidation enables greater autonomy and cost optimisation.
- Geographic diversification is now well underway, with above-16% growth in China and other Asian markets and continued expansion in Australia and the US.
- Strong ESG profile—A2 Milk’s emphasis on natural ingredients, transparent sourcing, and health benefits aligns with the growing wave of consumer and institutional preference for sustainability leaders.
- Secular trends: Structural demographic drivers (ageing Asian populations, premiumisation of dairy, and health and wellness megatrends) play squarely to A2’s strengths, particularly as the business migrates beyond infant formula into comprehensive life-stage nutrition.
- Market sentiment is increasingly optimistic, as seen in recent consensus upgrades and surging investor demand.
Investment strategies
For investors considering exposure to A2 Milk, the current inflection point offers multiple avenues for entry, supported by both technical and fundamental of tailwinds:
- Short-term positioning: Accumulation near technical support (currently AU$8.01–8.15) may offer attractive entry levels, with minimal drawdown risk and a clear stop-loss profile. The pending retest of the AU$8.29–8.45 resistance zone could serve as a momentum signal for breakout traders.
- Medium-term strategies: Building a core position ahead of anticipated product launches or earnings releases leverages upcoming positive catalysts—particularly as the effective resolution of supply chain headwinds is increasingly priced into the stock.
- Long-term holding: For investors with a multi-year horizon, A2’s first-ever dividend distribution and demonstrated ability to deliver steady profit growth suggest the stock could enter a new phase of shareholder value creation, supported by secular demographic trends and ongoing brand leadership.
- Portfolio context: As a low-beta, high-quality growth stock in the defensive consumer staples sector, A2 Milk offers natural diversification for portfolios with high exposure to cyclical or speculative assets.
The current setup—strong technical base, robust volume, and a promising corporate pipeline—means the risk-to-reward profile appears especially favourable relative to recent history.
Is it the right time to buy A2 Milk Company?
Summing up, A2 Milk Company presents a compelling array of investment merits:
- Strong business execution—with double-digit top- and bottom-line growth, rising profitability, and world-class brand assets.
- Well-anchored technical structure, backed by high-volume support at key moving averages and poised to challenge resistance.
- Transition to dividend-paying status, affirming capital discipline and aligning with the expectations of yield-seeking investors.
- Persuasive growth catalysts: from supply chain resolution and category innovation to Asian market expansion and ESG leadership.
- Favourable risk/reward—the combination of low historic beta, resilient margins, and upwardly revised earnings forecasts point toward a potential new bullish phase.
Against the backdrop of stabilising global markets and a resurgent premium dairy sector, A2 Milk Company seems to represent an excellent opportunity for investors seeking exposure to both near-term momentum and long-term structural growth. While explicit investment recommendations are beyond the scope here, the fundamentals, technicals, and forward outlook convincingly justify a renewed and serious consideration of this New Zealand icon as a core portfolio holding for 2025 and beyond.
With a unique market position, ongoing innovation, and visible catalysts ahead, A2 Milk Company may be entering an era where its growth potential can again be unlocked to the benefit of discerning investors.
How to buy The A2 Milk Company stock in New Zealand?
Buying A2 Milk Company shares online has never been easier or more secure for New Zealand investors. Today, regulated stockbrokers let you purchase A2 Milk (ATM) stock directly on the NZX, from your computer or mobile. There are two main ways to get exposure: classic share buying ("spot buying") for long-term investors, or trading Contracts for Difference (CFDs) for active traders seeking short-term opportunities. Each method has its own risks and advantages. To make the best decision, compare broker fees and features – you’ll find our detailed comparison further down the page.
Spot buying
A "cash" or spot purchase of A2 Milk Company stock means you become a registered shareholder: you truly own the shares, with all associated voting rights and dividends. For New Zealanders, buying ATM shares on the NZX is straightforward. Most brokers in NZ charge a fixed commission per order, typically around NZ$5–NZ$15.
Example with NZ$1,000 investment
A2 Milk shares are currently trading at about NZ$8.83 each (as of May 2025). Suppose your broker charges a NZ$5 commission. With NZ$1,000, you can purchase approximately 112 shares (NZ$1,000 - NZ$5 = NZ$995; NZ$995 ÷ NZ$8.83 ≈ 112 shares).
- Gain scenario: If A2 Milk’s share price rises by 10% to NZ$9.71, your 112 shares are now worth about NZ$1,088.
- Result: That’s a NZ$100 gross gain, or +10% on your original investment (excluding taxes and exchange fees).
Trading via CFD
CFD (Contract for Difference) trading lets you speculate on A2 Milk's price movements without owning the underlying shares. It’s popular among traders seeking leveraged exposure. With CFDs, you trade on margin and can benefit from both rising and falling prices. Fees typically include a spread (difference between buy/sell prices) and overnight financing costs if you keep positions after market close.
Example with NZ$1,000 and 5× leverage
You open a CFD position on A2 Milk shares with NZ$1,000. Using 5× leverage gives you NZ$5,000 market exposure.
- Gain scenario: If the share price rises by 8%, your position’s return is 8% × 5 = 40%.
- Result: You gain NZ$400 (before fees and interest), on a NZ$1,000 margin deposit.
Final advice
Whichever method you choose, it's crucial to compare brokers’ fees, platforms, and services before making your move. Costs can differ widely between spot buying and CFD trading, and may affect your overall returns. In the end, your choice should reflect your investor profile and objectives – whether you prefer the long-term security of owning shares, or the flexibility and risk/reward dynamics of CFD trading. To help you decide, see the broker comparison lower down this page.
Check out New Zealand's best brokers!Compare brokersOur 7 tips for buying A2 Milk Company stock
| 📊 Step | 📝 Specific tip for A2 Milk Company |
|---|---|
| Analyse the market | Review A2 Milk Company’s recent performance, noting its strong 6-month growth (+44.87%) and positive long-term outlook in the A2 protein sector. |
| Choose the right trading platform | Opt for a reputable NZX-partnered platform that allows buying ATM shares in NZD, ensuring low fees and seamless access for NZ investors. |
| Define your investment budget | Decide how much to invest based on your goals, keeping in mind A2 Milk Company’s moderate volatility and current share price around 8.83 NZD. |
| Choose a strategy (short or long term) | Consider a long-term approach to benefit from A2 Milk Company’s expansion in China and recent dividend initiation, while remaining alert to trade opportunities. |
| Monitor news and financial results | Track announcements like earnings, dividend updates, and strategic moves in international markets, as these frequently drive ATM stock price movements. |
| Use risk management tools | Utilise stop-loss or limit orders to protect your investment, especially around support levels such as 8.15 NZD, in line with your risk tolerance. |
| Sell at the right time | Reassess your position when A2 Milk Company approaches technical resistance points (e.g., 8.29–8.45 NZD), or if company or sector conditions change. |
The latest news about the A2 Milk Company
The A2 Milk Company’s share price has climbed 1.8% over the past week, continuing its six-month surge. The stock recently closed at 8.33 AUD on the ASX and 8.83 NZD on the NZX, reflecting an impressive six-month appreciation of nearly 45% and a 20% increase over the past year. Strong trading activity remains evident, with a three-month average daily turnover of 2.76 million shares, underscoring robust local and institutional investor engagement in New Zealand.
The company delivered a robust interim result, highlighted by double-digit revenue and profit growth and upgraded annual forecasts. For the six months ending December 31, 2024, A2 Milk reported a 10% increase in revenue, a 5% rise in EBITDA, and a 6.9% lift in net profit year-on-year, surpassing analysts’ expectations. Buoyed by these results, management revised its full-year outlook upwards, reinforcing market confidence and signaling sustained business momentum—an especially constructive signal for New Zealand investors.
A2 Milk declared its first-ever dividend in February 2025, marking an important milestone in shareholder returns. The board announced an inaugural dividend payout of 0.13 AUD per share, equating to a yield of 1.63%. This policy shift reflects the company’s growing maturity and its commitment to distributing value directly to both retail and institutional shareholders in New Zealand, strengthening its appeal for income-focused investors and enhancing the stock’s attractiveness relative to other local consumer staples.
Technical analysis indicates continued medium- and long-term support for the stock amidst recent price strength. Momentum signals remain broadly positive: the MACD is flashing a buy signal, while the stock is solidly supported by its 100- and 200-day moving averages (7.37 and 6.52 AUD, respectively). RSI levels are neutral near 45, and a well-defined technical support has formed around the 50-day moving average. These technical factors suggest underlying resilience and reduce downside risk—a constructive factor for portfolio managers.
Strategic diversification and innovation underpin A2 Milk’s strong regional profile, reinforced by local initiatives and Asia-Pacific growth. The company, headquartered in Auckland, continues to expand its range beyond core infant formula into child and senior nutrition, targeting demographic opportunities in China and supporting positive growth in Asian markets (+16.5%). Innovation in specialty A2 protein products and local New Zealand brand recognition have bolstered its market share, while newly secured manufacturing autonomy through the Synlait agreement further enhances strategic flexibility and supply chain confidence for the home market.
FAQ
What is the latest dividend for A2 Milk Company stock?
A2 Milk Company declared its first-ever dividend in February 2025, paying 0.13 AUD per share. This marks the company’s transition toward consistent shareholder returns as its cash generation and profitability strengthen. The initial dividend yield is moderate, reflecting a prudent approach as A2 Milk builds a record of regular distributions. Investors should note that future dividends will depend on ongoing financial performance and management strategy.
What is the forecast for A2 Milk Company stock in 2025, 2026, and 2027?
Based on the current NZX share price of 8.83 NZD, projections suggest potential values of 11.48 NZD at the end of 2025, 13.25 NZD at the end of 2026, and 17.66 NZD at the end of 2027. These estimates reflect the company’s strong fundamentals, recent double-digit growth, and its active expansion in Asian markets—especially in China’s senior and child nutrition categories.
Should I sell my A2 Milk Company shares?
Given A2 Milk Company’s recent strong financial results, resilient market position, and ambitious growth strategy, holding onto shares may be appropriate for investors seeking mid- to long-term growth. The company’s expanding presence in growth markets and its move to pay dividends demonstrate strategic maturity. With both technical and fundamental indicators supportive, A2 Milk continues to show robust prospects within the defensive consumer goods sector.
How are dividends from A2 Milk Company stock taxed for NZ investors?
Dividends from A2 Milk Company are generally taxable income for New Zealand investors and must be included in annual tax returns. New Zealand shareholders may receive imputation credits attached to dividends, offsetting part of their tax liability. No withholding tax usually applies to fully imputed dividends in NZ, offering an advantage for local investors. Capital gains from share sales are typically not taxed unless you trade shares frequently or for short-term gain.
What is the latest dividend for A2 Milk Company stock?
A2 Milk Company declared its first-ever dividend in February 2025, paying 0.13 AUD per share. This marks the company’s transition toward consistent shareholder returns as its cash generation and profitability strengthen. The initial dividend yield is moderate, reflecting a prudent approach as A2 Milk builds a record of regular distributions. Investors should note that future dividends will depend on ongoing financial performance and management strategy.
What is the forecast for A2 Milk Company stock in 2025, 2026, and 2027?
Based on the current NZX share price of 8.83 NZD, projections suggest potential values of 11.48 NZD at the end of 2025, 13.25 NZD at the end of 2026, and 17.66 NZD at the end of 2027. These estimates reflect the company’s strong fundamentals, recent double-digit growth, and its active expansion in Asian markets—especially in China’s senior and child nutrition categories.
Should I sell my A2 Milk Company shares?
Given A2 Milk Company’s recent strong financial results, resilient market position, and ambitious growth strategy, holding onto shares may be appropriate for investors seeking mid- to long-term growth. The company’s expanding presence in growth markets and its move to pay dividends demonstrate strategic maturity. With both technical and fundamental indicators supportive, A2 Milk continues to show robust prospects within the defensive consumer goods sector.
How are dividends from A2 Milk Company stock taxed for NZ investors?
Dividends from A2 Milk Company are generally taxable income for New Zealand investors and must be included in annual tax returns. New Zealand shareholders may receive imputation credits attached to dividends, offsetting part of their tax liability. No withholding tax usually applies to fully imputed dividends in NZ, offering an advantage for local investors. Capital gains from share sales are typically not taxed unless you trade shares frequently or for short-term gain.
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