Australian Dairy Nutritionals Posts 90% Quarterly Revenue Surge on China Nutritional Powders

Revenue Growth Driven by Nutritional Powders in China

Australian Dairy Nutritionals Limited (AHF) delivered a striking 90% increase in consolidated revenue for the June quarter, reaching $2.6 million, largely propelled by a 136% surge in nutritional powder sales. This segment, which includes the Future brand infant formula, generated $2.1 million in Q4 FY26 and now accounts for 69% of total revenue, up from 43% the previous year. The growth reflects stronger distribution and higher consumer retention in China, where the company’s o2o (online-to-offline) sales channel via the M2C global shopping app is gaining traction.

Full Year Revenue Stable Despite Farm Exit Impact

For the full FY26 year, total revenue edged up by 1% compared to FY25, despite a notable decline in milk and livestock sales following the exit from the North Brucknell farm lease in the prior year. The strategic pivot towards branded nutritional powders is clear, with this category’s revenue rising 63% year-on-year to $5 million. This shift underscores Australian Dairy Nutritionals’ transition from commodity dairy sales to value-added infant formula products, manufactured at its Camperdown facility.

Cash Flow and Capital Position

Operating cash flow remained negative, with net outflows of $1.4 million for the quarter. However, cash holdings improved to $1.2 million from $457,000 in Q3 FY26. The company bolstered its liquidity by securing a $1.5 million secured loan facility from RELI Capital Ltd, with a 12-month term and a variable interest rate of 9.74% per annum. The Board continues to evaluate further capital raising options to fund growth initiatives and operational needs, expressing confidence in their ability to do so.

Sales Expansion and Market Developments

Australian Dairy Nutritionals has exceeded its distribution target of 1,000 active stores by the end of FY26, with plans to deepen penetration in China’s provinces in FY27. This expansion is supported by the distribution partner Mutree, which is adding sales personnel and implementing a new incentive plan to drive consumer engagement. Meanwhile, Vietnam sales, which were paused due to regulatory processes, are expected to resume in Q1 FY27 following the completion of a one-year contract packing arrangement finalized in May 2026.

Remuneration and Operational Notes

Director remuneration for the quarter remained steady at $80,000, consistent with the prior quarter. The company did not report any material changes in research and development expenditure, and continues to focus on marketing and distribution efforts to support its infant formula brands. Investors should watch for updates on capital raising progress and the impact of expanded sales efforts in China and Vietnam, which will be critical to sustaining momentum in the coming quarters.