How Milklab’s Rise Propelled Noumi’s FY25 Growth and Legal Closure

Strong Revenue and Earnings Growth

Noumi Limited (ASX – NOU) has delivered a solid financial performance for the 2025 fiscal year, posting a 1.0% increase in group revenue to $595.8 million. More notably, the company’s adjusted operating EBITDA climbed 13.0% to $57.4 million, reflecting operational improvements and robust demand for its products, particularly in the plant-based milks category.

At the heart of this growth is Noumi’s flagship Milklab brand, which continues to gain traction both domestically and internationally. Milklab’s expansion into Australian retail channels since May 2024 has been a standout success, with its almond milk variant becoming the top-selling product in its category. This retail presence, combined with a 20.1% increase in international plant-based milk sales, underscores the brand’s growing footprint in key markets such as South East Asia.

Dairy & Nutritionals Segment Recovery

Noumi’s Dairy & Nutritionals division also showed encouraging signs of recovery, doubling its adjusted operating EBITDA from $5.5 million in FY24 to $11.1 million in FY25. This marks the third consecutive year of earnings improvement despite challenging market conditions. The segment’s steady revenue growth was supported by stronger domestic retail and out-of-home sales, as well as strategic product mix enhancements and improved production efficiencies.

Branded products such as Milklab Lactose Free and Australia’s Own Lowers Cholesterol contributed to this positive momentum, highlighting Noumi’s ability to innovate and meet evolving consumer preferences for healthier options.

Legacy Legal Issues Resolved

FY25 also saw Noumi successfully close out all legacy legal matters, including the Australian Securities & Investments Commission’s civil penalty proceedings and a shareholder class action. This resolution removes a significant overhang on the company, allowing management to focus fully on growth initiatives without the distraction of past disputes.

However, the statutory net loss after tax widened to $150 million, primarily due to non-cash accounting impacts – a $112.4 million fair value adjustment on convertible notes and a $50 million impairment charge related to Dairy & Nutritionals. Excluding these items, Noumi’s underlying operating performance was positive, supported by nearly doubled operating cash flow and reduced net financial debt (excluding convertible notes).

Looking Ahead – Investment and Convertible Notes Maturity

With legacy issues behind it, Noumi plans to invest further in the Milklab brand through marketing and international expansion, particularly targeting strategic markets in South East Asia. The company also intends to continue transformation projects in Dairy & Nutritionals to enhance product value and operational efficiency.

Attention is turning to the maturity of convertible notes in May 2027, which carry a minimum redemption value of $610.4 million. Noumi is actively planning capital structure solutions to support its strategic ambitions, confident that its improved financial position will facilitate a favorable recapitalization outcome.

Despite positive momentum, Noumi remains cautious amid macroeconomic uncertainties and will maintain its policy of not providing formal financial guidance for the near term.