New Zealand-based A2 Milk Company has reported a drop in its share price due to the decline in Chinese birth rates, which has reached a record low.
On the Australian Securities Exchange (ASX), A2 shares plunged by 11.2 percent upon closing on Monday, January 19, shortly after the distressing news was announced in China. In response to a price query on the ASX, the company stated that it wasn’t privy to any information related to its current situation that hasn’t been disclosed to the market. This information, if known by certain market participants, might potentially explain the recent trading dynamics of its securities.
When asked to provide an additional reason for its recent trading performance, A2 pointed to an announcement made by the China National Bureau of Statistics on January 19. The announcement revealed that the number of newborns in China last year had decreased by 17 percent to 7.92 million.
The infant milk formula, one of A2’s greatest sources of income, is exported to China. In the fiscal year 2025, it recorded a revenue of NZ$1.2 billion (A$1.04 billion) from infant formula sales in China and Asia.
What caused the drop in A2 Milk Company’s share price?
The decline in Chinese birth rates, which have reached a record low, was reported as the cause for the fall in A2’s share price.
What was the percentage decrease in A2’s share price?
A2’s share price dropped by 11.2 percent on the Australian Securities Exchange.
What is one of A2’s largest sources of income?
One of A2’s largest revenue streams is its infant milk formula, which is exported to China.
