NZ's A2 Milk Tumbles To 4-Month Low As Revenue Forecast Misses Expectation

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Co sees mid-single digit revenue growth in FY25

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Expects IMF market conditions in China to remain challenging

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FY24 profit up nearly 8% to NZ$167.6 mln

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Shares fall more than 21% to hit their lowest since late April

(Recasts with further details and share moves, adds analyst comments)

By Shivangi Lahiri

Aug 19 (Reuters) - Shares of New Zealand's a2 Milk Co fell more than 21% on Monday to hit their lowest in four months, as the infant milk formula (IMF) maker forecast weaker-than-expected annual revenue after reporting a near 8% growth in profit for last year.

The company expects a mid-single digit increase in fiscal 2025 revenue with growth affected by IMF supply constraints, which are expected to be resolved in the first half of this financial year.

The forecast was below a Visible Alpha consensus estimate of 9% revenue growth.

"China IMF market conditions remain challenging and the company expects a further market value decline in FY25," a2 Milk said in a statement.

The New Zealand-based firm said it was working on options to accelerate access to additional controlled China label IMF registrations to achieve greater market access.

Shares of the company fell as much as 21.4% by 0021 GMT to NZ$6.080, their lowest since late April, and were the top losers on New Zealand's benchmark index, which was down 1%.

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