The a2 Milk Co (ASX:A2M) EBIT: A$293 Mil (TTM As of Dec. 2025)


ASX:A2M The a2 Milk Co Ltd ASX:A2M
83 GF Score
Price A$6.85
GF Value A$6.68
Valuation Fairly Valued
! 3 Warning Signs
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What is The a2 Milk Co EBIT?

The a2 Milk Co ASX:A2M +1.03% 83 EBIT is A$293 Mil as of Dec. 2025. GuruFocus rates ASX:A2M with a GF Score™ of 83/100 and a GF Value™ of A$6.68 (Fairly Valued). The stock has 3 warning signs investors should review.

The a2 Milk Co's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2025 was A$142 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2025 was A$293 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. The a2 Milk Co's annualized ROC % for the quarter that ended in Dec. 2025 was 30.45%. The a2 Milk Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 145.94%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. The a2 Milk Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 6.97%.


The a2 Milk Co  (ASX:A2M) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

The a2 Milk Co's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=238.202 * ( 1 - 31% )/( (544.741 + 534.967)/ 2 )
=164.35938/539.854
=30.45 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1800.291 - 327.72 - ( 1019.833 - max(0, 417.214 - 1345.044+1019.833))
=544.741

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1607.086 - 334.194 - ( 781.135 - max(0, 376.538 - 1114.463+781.135))
=534.967

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

The a2 Milk Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=283.836/( ( (219.758 + max(-79.109, 0)) + (169.225 + max(-39.265, 0)) )/ 2 )
=283.836/( ( 219.758 + 169.225 )/ 2 )
=283.836/194.4915
=145.94 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(57.275 + 128.954 + 110.747) - (327.72 + 40.78 + 7.585)
=-79.109

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(175.059 + 151.022 + 7.2470000000001) - (334.194 + 25.827 + 12.572)
=-39.265

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

The a2 Milk Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2025 )
=292.61/4199.727
=6.97 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


The a2 Milk Co EBIT Related Terms


The a2 Milk Co EBIT Historical Data

* Premium members only.

The historical data trend for The a2 Milk Co's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The a2 Milk Co EBIT Chart

The a2 Milk Co Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 110.94 165.79 207.79 222.94 270.42

The a2 Milk Co Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 115.01 108.57 117.21 150.69 141.92

ASX:A2M vs KHC, GIS: EBIT Comparison

For the Packaged Foods subindustry, The a2 Milk Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The a2 Milk Co EV-to-EBIT vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, The a2 Milk Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where The a2 Milk Co's EV-to-EBIT falls into.


ASX:A2M
83GF Score
The a2 Milk Co Ltd ASX:A2M
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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The a2 Milk Co EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$293 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of A$293 Mil mean?
The a2 Milk Co (ASX:A2M) has a EBIT of A$293 Mil as of Dec. 2025. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on The a2 Milk Co.
Is The a2 Milk Co's EBIT too high?
The a2 Milk Co's current EBIT is A$293 Mil. Overall, The a2 Milk Co has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The a2 Milk Co's EBIT compare to KHC and GIS?
The a2 Milk Co's EBIT of A$293 Mil can be compared against companies in the Consumer Packaged Goods industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Consumer Packaged Goods company?
A good EBIT depends on the Consumer Packaged Goods industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on The a2 Milk Co. The a2 Milk Co's current EBIT is A$293 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The a2 Milk Co stock overvalued right now?
Based on GuruFocus' analysis, The a2 Milk Co (ASX:A2M) is currently considered Fairly Valued. The stock's GF Value™ is A$6.68, compared to a current price of A$6.85 — trading 2.5% above its estimated fair value. The current EBIT is A$293 Mil. The a2 Milk Co's overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For The a2 Milk Co (ASX:A2M), the current EBIT is A$293 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is The a2 Milk Co (ASX:A2M) Overvalued in 2026?

Based on GuruFocus' analysis, The a2 Milk Co stock appears to be overvalued. The current stock price of A$6.85 is trading 2.5% above its estimated GF Value™ of A$6.68. GuruFocus considers The a2 Milk Co to be Fairly Valued.

Key valuation signals for ASX:A2M:

  • EBIT: A$293 Mil
  • GF Value™: A$6.68 vs. price of A$6.85 (2.5% above fair value)
  • GF Score™: 83/100 with 3 warning signs

No single metric tells the full story. See the ASX:A2M stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


The a2 Milk Co Business Description

Address 51 Shortland Street, Level 10, Auckland, NTL, NZL, 1010
A2 Milk is a New Zealand licensor and marketer of fresh milk, infant formula, and other dairy products that lack the A1 beta-casein protein. The firm was founded in 2000 by Corran McLachlan, who developed a genetic test to determine which proteins a cow produces in its milk, and business partner Howard Paterson. The company has been through a tumultuous history of receivership, legal battles, and strategic shifts, but emerged in its current structure in 2006 and listed publicly in March 2013.
83GF Score

Get the complete analysis for ASX:A2M

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$6.85
Price
A$6.68
GF Value