Source: Radio New Zealand
A2’s share price fell 12 percent, after Chinese data showed new births dipping below 8 million for the year. Getty Images
A2 Milk has placed itself in a trading halt on the Australian stock market, with its share price falling 12 percent, following the release of Chinese data indicating a larger than expected drop in the number of new births.
A2 had previously indicated its forecast growth in infant formula sales to China would be supported by an annual growth rate in new births of between 8.5-9 million.
However, the number of new births in China fell 17 percent last year to just under 8m – the lowest in nearly 90 years.
Brokerage firm Forsyth Barr senior analyst Matt Montgomerie said the data was tracking well down on its forecast of 8.6m new births in 2026, with a low single-digit per annum decline thereafter.
“This now appears overly optimistic, particularly given this year’s number highlights that China’s proactive birth/fertility policies are having limited impact,” Montgomerie said.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
