Noumi (ASX:NOU) used its latest earnings call to emphasize what management described as a clear strategy focused on consistent execution, with the first half of FY2026 showing “solid progress” across both its Plant-based Milks and Dairy & Nutritionals segments. Chief Executive Officer Michael (surname not provided in the transcript) said the company is investing for growth—particularly behind its MILKLAB brand—while its Dairy & Nutritionals business continues to deliver more consistent operating results following a multi-year turnaround.
Record EBITDA growth and higher revenue
Management reported adjusted operating EBITDA of AUD 33.9 million, up 23% versus the first half of FY2025. Chief Financial Officer Pete (surname not provided) said group revenue increased by AUD 33 million, or 11.2%, compared with the prior period, describing the result as continued improvement on top of the full-year FY2025 EBITDA increase previously announced.
Plant-based Milks: record revenue, investment impacts EBITDA
Noumi’s Plant-based Milks segment delivered record revenue of AUD 94.3 million, up 1.1%, and segment EBITDA of AUD 22.9 million. Pete said EBITDA in Plant-based Milks declined by AUD 2.4 million year over year, attributing the reduction entirely to a decision to increase sales and marketing investment by AUD 4.3 million versus the prior period.
Management highlighted MILKLAB performance across channels, with the company stating MILKLAB sales were up 11.1% across both Plant-based and Dairy Milks. The call also cited Plant-based channel growth, including:
- MILKLAB plant sales up 8%
- MILKLAB Oat up 22.5%
- HORECA plant revenues up 2.5%, described as a return to growth
- Export sales up 18.4% in Plant-based Milks, linked to targeted initiatives to extend MILKLAB’s geographic reach
Michael said the company is investing in new formats, flavors, and cold applications, and highlighted an “improved soy formulation” intended to round out the MILKLAB range for customers. In Q&A, management said the broader MILKLAB suite—almond, oat, soy, and lactose-free—supports opportunities with larger “multi-store outlets” in the HORECA channel that often prefer to range a single product format.
On market conditions, Pete said plant-based milks in grocery were growing in the mid-single digits over the last 12 months based on recent data, with branded revenues performing strongly. He noted that this dynamic contributed to some contraction in Noumi’s contract manufacturing volumes. While Noumi said data is less available for HORECA, management pointed to macroeconomic and cost-of-living pressures as potential factors and said it was pleased its revenues had returned to growth in a competitive channel.
Dairy & Nutritionals: turnaround continues, bulk cream a key driver
Dairy & Nutritionals posted EBITDA of AUD 12.4 million, up more than 167% and more than double the prior-year result of AUD 4.6 million. Management said the performance reflected a combination of improved long-life milk export volumes, strong lactose-free results, solid lactoferrin production, and improved contribution from commodities—particularly bulk cream.
Key items discussed on the call included:
- Lactose-free revenue growth of 16.9%
- Australia’s Own Lower Cholesterol up 28.7%
- Lactoferrin volumes up 6.9%, with prices down following the expiry of a multi-year premium pricing contract
- Bulk cream revenue up AUD 8.3 million due to price and volume, contributing to improved segment results
Management said domestic long-life milk contract manufacturing sales were down slightly, with margins “very competitive” after a number of tenders over the last 12 to 18 months. Export long-life milk sales returned to growth after periods of contraction, driven by a trend toward smaller formats in export markets and volumes related to assisting Southeast Asian customers facing supply chain disruptions tied to border conflicts. In Q&A, management suggested the border conflict-related uplift was more of a one-off factor.
Looking ahead, executives cautioned that pricing pressure between farmgate milk prices and global commodity markets could impact the ongoing benefit from bulk cream “more so in FY2027,” while they expected conditions to remain favorable for the rest of FY2026. Michael also noted dairy’s exposure to both a competitive domestic market and global impacts on export markets and commodity prices.
Capital structure, convertible notes, and cash flow
Noumi discussed its convertible notes, with planning underway for their maturity in May 2027. The company reported a statutory net loss after tax of AUD 24.2 million, which included a AUD 42.2 million fair value adjustment on the convertible notes. Pete said fair value charges were higher than last year due to the approach of maturity and would continue until maturity in 2027.
Pete said the notes are carried at AUD 475 million on the balance sheet, which is distinct from the redemption amount. He stated the balance sheet value is a proxy for the net present value of a redemption value of at least AUD 610 million in May 2027. He also addressed the classification of the notes as a current liability, attributing it to accounting rule changes because the notes can be converted into shares at any time, adding that the classification “has no impact on our liquidity position.”
On leverage, Pete said total debt—based on the December 31, 2025 redemption value of the convertible note and including AUD 68 million of net senior debt—was AUD 662 million, which he said represented approximately 10.5x last 12 months EBITDA (post AASB 16 basis). He said the refinancing scale means the company and advisors are considering all options, but it is too early to determine the best outcome or how equity values might be impacted.
Cash flow from trading was AUD 23 million, down AUD 17 million from the prior-year half. Pete attributed the change to increased inventories of about AUD 6 million to align with target levels and an increase in receivables reflecting strong export sales late in the half, which he said would be collected in Q3. Capital expenditure was AUD 2.5 million for the period, with management describing its approach as disciplined.
During the call, management also noted it spent over AUD 19 million on sales and marketing activities in the first half, primarily in Plant-based Milks, with more spending expected in the second half. In Q&A, executives said marketing investment levels should “moderate” over time rather than continue increasing at the same pace, while emphasizing a mix of brand, activation, sales team, and international brand playbook investments.
In closing remarks, Michael reiterated a focus on service, quality, and innovation, and said the company expects its investments—particularly behind MILKLAB—to be rewarded in future periods. He also noted that CFO Pete is retiring, with Iain Short set to commence on April 1.
About Noumi (ASX:NOU)
Noumi Limited develops, sources, manufactures, markets, sells, and distributes plant-based and dairy beverages, and dairy and nutritional products to wholesale and consumer markets. It operates in Dairy and Nutritionals, and Plant Based Milks segments. The company offers a range of life dairy milk beverages, nutritional products, and performance and adult nutritional powders. It also provides various beverage products, including almond, oat, soy, coconut, macadamia, and other plant-based milks and liquid stocks.
