AHF Reports $1.9M Revenue in Q1 FY26, Nutritional Powder Sales Up 1,239%
Australian Dairy Nutritionals reported a 66% year-on-year revenue increase in Q1 FY26, driven by strong nutritional powder sales and expanded distribution in China, while improving cash flow and production capacity.
- Q1 FY26 revenue rises 66% year-on-year to $1.9 million
- Nutritional powder sales jump 1,239% compared to prior year
- Production at Camperdown facility up 485% year-on-year
- Expanded distribution of Future brand across five Chinese provinces
- Net cash outflow improves to $655k with $1.9 million cash on hand
Robust Revenue Growth and Production Gains
Australian Dairy Nutritionals Limited (ASX – AHF) has delivered a strong start to FY26, posting consolidated revenue of $1.9 million for the September quarter. This represents a 66% increase compared to the same quarter last year, underscoring the company’s accelerating momentum in the infant formula and nutritional powders market.
Notably, sales of nutritional powders soared by an extraordinary 1,239% year-on-year, reflecting successful pipeline and replenishment orders. Production at the Camperdown facility also surged, with 67 tonnes produced, up 485% from Q1 FY25, highlighting improved plant utilisation aligned with growing sales demand.
Strategic Expansion in China
The company’s Future brand continues to gain traction in China’s competitive infant nutrition market. Distribution has expanded to five provinces via the M2C global shopping app’s online-to-offline (o2o) channel, a key growth avenue for Australian Dairy Nutritionals. This geographic expansion is part of a broader strategy to deepen market penetration throughout FY26, aiming to establish the Future brand as a meaningful player in the region.
Complementing this, the recent launch of Sprout Organics in June 2025 adds a new dimension to the product portfolio, expected to further enhance plant utilisation and diversify revenue streams.
Improved Cash Flow and Financial Position
While total revenue decreased 32% from the prior quarter, the company’s net cash outflows from operations improved significantly to $655,000, nearly halving the outflow from Q1 FY25. Cash reserves stood at $1.9 million at quarter-end, down from $2.7 million, but the company retains access to a $1.22 million secured funding facility, providing a buffer for operational needs.
Management’s focus on balancing growth investments with prudent cash management appears to be paying off, positioning Australian Dairy Nutritionals to sustain its expansion trajectory without immediate capital raises.
Outlook and Market Positioning
The company remains confident that sales and production momentum will continue into Q2 FY26, driven by ongoing distribution expansion and new product introductions. As a vertically integrated group owning organic dairy farms and a dedicated processing facility in Victoria’s ‘Golden Triangle,’ Australian Dairy Nutritionals is well placed to capitalise on growing global demand for premium, organic infant nutrition products.
Investors will be watching closely to see if the company can maintain its rapid growth pace and convert scale into profitability, particularly as it navigates the complexities of the Chinese market and supply chain dynamics.
Bottom Line?
Australian Dairy Nutritionals’ strong start to FY26 sets the stage for continued growth, but sustaining momentum and managing cash flow will be key challenges ahead.
Questions in the middle?
- Can Australian Dairy Nutritionals sustain its rapid sales growth amid fluctuating quarterly revenue?
- How will the expansion into additional Chinese provinces impact long-term profitability?
- What role will Sprout Organics play in diversifying revenue and improving plant utilisation?
