By David Winning
SYDNEY--A2 Milk's share price falls nearly 12% early on Monday after it downgrades expectations for profits and earnings due to setbacks supplying China-label infant milk formula.
A2 Milk's New Zealand-listed stock was recently at NZ$9.90, effectively wiping out all its gains since Feb. 10.
A2 Milk listed a raft of recent challenges, including low inventory levels, a higher cost of air freight, and testing requirements extending quality assurance release times.
Management said these issues are likely to materially reduce China label IMF product availability during its fiscal fourth quarter, mainly in April and May.
As a result, A2 Milk now expects net profit for the 12 months through June to be similar to the fiscal 2025 outcome or lower when measured on a continuing-operations basis. It also cut expectations for its annual Ebitda margin to 14.0-14.5%, from 15.5-16.0%, and forecast annual revenue growth of low to mid double-digit percent. The latter forecast represents a less bullish view than growth of mid double-digit percent communicated to shareholders before.
Write to David Winning at david.winning@wsj.com
(END) Dow Jones Newswires
April 12, 2026 18:13 ET (22:13 GMT)
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