A2 Milk's Share Price Drops on Underwhelming Guidance
Dow Jones
Aug 17
2258 GMT - A2 Milk's share price falls 10% in New Zealand to approach a two-month low after its guidance for FY27 disappointed the market. A2 Milk signaled an Ebitda margin of around 15% and revenue growth of a mid single digit percent. Citi says the Ebitda guidance is around 8% below consensus hopes, as A2 Milk continues to feel the impact of disruption to infant milk formula supply in China that hobbled its performance in 4Q of FY26. Analyst Sam Teeger says A2 Milk's recovery from this disruption is taking longer than the market had expected. "The revenue growth FY27 guidance of mid-single digits (skewed to 2H as 1H is flat) is underwhelming compared to the multiple that the stock trades on," Citi says. A2 Milk was last at NZ$7.39.
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