A2 Milk Shares Plunge Amid Challenging China Market
Published on August 19, 2024
A2 Milk shares plunged nearly 19 percent on the market on Aug. 19 amid a challenging outlook in China. The infant formula company reported a net profit after tax of NZ$167.6 million (US$101.7 million) in the 2024 financial year, up 7.7 percent. However, A2 Milk said (pdf) it was expecting only mid-single digit revenue growth in the 2025 financial year, which was less than the market expected. Newborn numbers in China fell 5.6 percent in the 2023 financial year, with longer term decline predicted, A2 Milk noted. Results Snapshot Despite this, A2 Milk reported strong growth including a 6.9 percent boost in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $234.3 million....