Noumi Limited reported a 13.4% revenue increase in Q2 FY26 driven by strong growth in its Dairy and Nutritionals and Plant-based Milks segments, despite a $4.5 million operating cash outflow impacted by legal expenses. The company’s Milklab brand continues to gain traction both domestically and internationally.
- Q2 FY26 revenue up 13.4% to $170.3 million
- Dairy and Nutritionals segment revenue increased 17.7%
- Milklab brand sales grew 9.1%, with exports up 34.3%
- Operating cash outflow of $4.5 million includes $2 million in legal costs
- Convertible Notes redemption value at $593.6 million as of December 2025
Strong Revenue Growth Despite Cash Outflows
Noumi Limited, a prominent player in Australia’s fast-moving consumer goods sector, has released its quarterly results for the period ending 31 December 2025, showing a solid 13.4% increase in consolidated revenue to $170.3 million compared to the same quarter last year. This growth was primarily driven by robust performances in both the Dairy and Nutritionals segment and the Plant-based Milks category.
While the company’s top line showed encouraging momentum, it reported an operating cash outflow of $4.5 million for the quarter. This was notably impacted by $2 million in legal expenses related to the resolution of legacy matters, alongside timing differences in supplier payments. Despite these cash flow pressures, Noumi maintains a healthy liquidity position with $12.5 million in unrestricted cash and an additional $10 million in undrawn credit facilities.
Milklab Brand and Export Markets Fuel Growth
The Milklab brand, encompassing both plant-based and dairy products, continues to be a standout performer. It achieved $39.2 million in revenue for the quarter, up 9.1% year-on-year. Export sales for Milklab surged by 34.3%, reflecting growing international demand, while domestic retail sales increased by nearly 50% since the brand’s retail launch in mid-2024.
Within the Plant-based Milks segment, revenue rose 3.3% to $47.2 million, supported by growth in export markets and the hospitality sector. Milklab Oat milk led the charge with a 15.6% revenue increase, underscoring consumer appetite for on-trend, plant-based alternatives.
Dairy and Nutritionals Segment Shows Resilience
The Dairy and Nutritionals segment posted a 17.7% revenue increase to $123 million, buoyed by strong export sales which nearly doubled, now representing almost half of the segment’s long-life dairy volumes. This shift towards exports was partly driven by new opportunities and recovery from supply disruptions in Southeast Asia. However, domestic sales declined by 11.2%, mainly due to reduced contracted volumes in retail channels, though this was offset by growth in lactose-free products.
Bulk cream sales also saw a significant uplift of 42.7%, reflecting favourable market conditions. Meanwhile, the Nutritional Ingredients business delivered a remarkable 32.2% sales increase, despite a decline in Lactoferrin sales due to contract maturity.
Financial Position and Outlook
Noumi’s cash flow statement reveals ongoing investments in brand marketing and sales initiatives, particularly within the Plant-based Milks segment, as the company positions itself for longer-term growth. Capital expenditure was modest at $1.1 million for the quarter, focused on property, plant, and equipment.
The company’s Convertible Notes, a significant component of its capital structure, have a redemption value of $593.6 million as at 31 December 2025, with expectations to rise to $610.4 million by maturity in 2027, assuming continued interest payments. Noumi’s management anticipates an improvement in adjusted operating EBITDA for the first half of FY26 compared to the prior year, signalling operational progress despite the short-term cash flow challenges.
Overall, Noumi’s Q2 results highlight a company navigating competitive pressures and legacy costs while capitalising on export growth and evolving consumer trends in plant-based and nutritional products.
Bottom Line?
Noumi’s solid revenue growth and export momentum set the stage for a pivotal half-year update, though legal costs and cash flow remain watchpoints.
Questions in the middle?
- How will ongoing legal expenses impact Noumi’s cash flow in coming quarters?
- Can Milklab sustain its rapid domestic retail growth and expand further internationally?
- What strategies will Noumi deploy to offset declining domestic dairy volumes?