Noumi Limited lifted FY26 revenue by 8.8% and adjusted operating EBITDA by 7.6%, driven by Dairy & Nutritionals' strong earnings and strategic investments in Plant-based Milks. The company faces refinancing uncertainty with $610 million convertible notes maturing in May 2027, prompting a proposed acquisition by majority shareholder Arrovest.
- FY26 revenue rose 8.8% to $648.4 million
- Adjusted operating EBITDA increased 7.6% to $61.8 million
- Dairy & Nutritionals EBITDA nearly doubled to $21.6 million
- Plant-based Milks revenue up 2.4% with increased marketing spend
- Binding acquisition proposal by Arrovest to address convertible notes maturity
Solid Underlying Growth Masks Funding Challenges
Noumi Limited (ASX:NOU) has reported a solid financial performance for FY26, with group revenue climbing 8.8% to $648.4 million and adjusted operating EBITDA rising 7.6% to $61.8 million. The Dairy & Nutritionals segment led the charge, nearly doubling its adjusted EBITDA to $21.6 million on the back of favourable commodity prices, particularly for bulk cream, and improved operational discipline. Meanwhile, the Plant-based Milks division, anchored by the Milklab brand, posted a modest 2.4% revenue increase to $186.3 million despite a 14.2% EBITDA decline due to a deliberate $6 million step-up in sales and marketing investment.
Milklab’s 10th anniversary year saw continued expansion in retail channels with a 44.6% sales surge, offsetting softness in the HORECA (Hotels, Restaurants, Cafés) segment, which declined 1.6% for the full year amid tightening economic conditions. International sales also gained traction, rising 9.8% with strong growth in Southeast Asia and China. Dairy & Nutritionals benefitted from a 33.5% increase in bulk cream revenue and a 49.4% jump in export long-life milk sales, which now comprise over 40% of the segment’s dairy revenue. Consumer Nutritionals brands Vital Strength and Uprotein grew 11.6% and 18.0% respectively, although margin pressure from rising protein input costs persisted.
Convertible Notes Maturity Drives Strategic Review and Proposed Acquisition
Despite operational progress, Noumi’s balance sheet remains burdened by a looming capital structure challenge. The company faces a $610 million convertible notes maturity in May 2027, alongside a revolving credit facility expiring in March 2027, with no committed refinancing arrangements currently in place. This funding uncertainty casts significant doubt on the Group’s ability to continue as a going concern, as disclosed in the FY26 annual report.
Following a comprehensive 12-month strategic review exploring alternatives including asset sales, recapitalisation, refinancing, and convertible note amendments, Noumi’s Independent Board Committee concluded no viable option exists to redeem or refinance the notes in full on acceptable terms. Subsequently, Noumi entered into a binding Scheme Implementation Deed with majority shareholder Arrovest Pty Ltd, which currently holds 52.5% of shares and approximately 83.4% of convertible notes after secondary market acquisitions. Arrovest proposes to acquire all remaining shares and listed options via schemes of arrangement, offering shareholders 12.34 cents per share; a 12.2% premium to the last close and 30% to the 30-day VWAP; and 0.2 cents per option.
The Independent Board Committee unanimously recommends shareholders vote in favour of the Schemes, subject to no superior proposal and a positive Independent Expert’s Report. The proposal provides liquidity and certainty ahead of the convertible notes maturity but may crystallise losses for some shareholders. The Scheme Booklet and Independent Expert’s Report are expected to be distributed in early October, with voting scheduled for November.
Operational Investments and Sustainability Initiatives Continue
Noumi’s FY26 results reflect ongoing investments in brand, innovation, people, and operations to support long-term growth. The company invested $7.2 million in its Shepparton and Ingleburn manufacturing sites, including new ultrafiltration technology to enhance value-added dairy products such as Milklab Lactose Free Ultra Filtered. Enterprise Resource Planning (ERP) and real-time quality management systems were further embedded, contributing to a near 50% reduction in consumer complaints over three years.
Safety improvements were notable, with the Total Recordable Injury Frequency Rate falling from 8.4 to 5.2 and the Ingleburn site surpassing 500 days without a lost-time injury. Employee engagement remained high at 90% participation in surveys, with leadership development programs completed by over 100 managers. Noumi also advanced its sustainability reporting, publishing its first climate report aligned with AASB S2, and committed to a 40-50% absolute reduction in Scope 1 and 2 greenhouse gas emissions by 2030 from a 2020 baseline.
What to Watch Next
Noumi enters FY27 with a stronger operating platform and clear strategic priorities but remains cautious amid macroeconomic volatility, input cost inflation, and competitive pressures. The outcome of the proposed Arrovest Schemes will be pivotal, determining the company’s ownership structure and capital pathway ahead of the convertible notes maturity. Investors should monitor the release of the Scheme Booklet and Independent Expert’s Report, as well as any developments on refinancing or alternative proposals. Operationally, the market will be watching how Noumi balances continued investment in growth brands with margin pressures and evolving consumer demand.
Bottom Line?
Noumi’s FY26 performance shows resilience and growth but hinges on shareholder approval of Arrovest’s acquisition scheme to resolve looming convertible notes maturity risk.
Questions in the middle?
- Will shareholders approve Arrovest’s proposed acquisition scheme amid crystallising losses?
- How will Noumi manage margin pressures in Plant-based Milks while sustaining growth investments?
- What refinancing or capital structure solutions might emerge if the Schemes do not proceed?