Noumi Faces Convertible Notes Maturity and Market Variability Despite Strong Q1

Strong Revenue Growth Amid Market Variability

Noumi Limited, a prominent Australian FMCG company specialising in dairy and plant-based milks, has kicked off FY26 with a solid financial performance. The company reported consolidated revenue of $162.4 million for the quarter ended 30 September 2025, marking a 9.0% increase compared to the same period last year. This growth was primarily driven by a 13.7% surge in the Dairy and Nutritionals segment and a 9.3% rise in Milklab plant-based milk sales.

While overall Plant-based Milks revenue dipped slightly by 1.0%, this was largely due to lower contract manufacturing revenues. Notably, Milklab’s oat milk product saw a remarkable 29.7% revenue increase, supported by a 3.8% uplift in almond milk sales. The HORECA (hotel, restaurant, and café) channel also contributed positively, with a 4.7% revenue growth in plant-based milks and a 13.0% increase in dairy long-life domestic sales.

Resolving Legacy Legal Matters and Cash Flow Strength

Noumi’s operating cash flow was a healthy $12.8 million for the quarter, despite absorbing $3.7 million in legal expenses related to closing out legacy matters. These legal issues were fully provided for in the previous fiscal year and were resolved following Victorian Supreme Court approval of a class action settlement in September 2025. The company also benefited from $1.7 million in proceeds from the release of a term deposit tied to US litigation obligations.

At quarter-end, Noumi held $21.9 million in unrestricted cash and maintained $10 million in undrawn credit facilities, providing a combined liquidity buffer of $31.9 million. Capital expenditure was modest at $1.1 million, focused on property, plant, and equipment, while lease repayments and convertible note interest payments were also made during the period.

Convertible Notes and Future Outlook

Looking ahead, Noumi has begun planning for the maturity of its $597.4 million convertible notes due in 2027. These notes are carried at fair value on the balance sheet and are expected to increase to a minimum redemption value of $610.4 million by maturity, assuming ongoing cash interest payments at 4% per annum. The company’s financing facilities remain robust, with primary banking relationships through HSBC Bank Australia and National Australia Bank.

Despite the encouraging start to FY26, Noumi acknowledges variability in month-to-month market conditions. The company remains cautiously optimistic but is focused on maintaining momentum across its key product segments while managing financial obligations prudently.