CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

A2 Milk share price smashed, company appoints new CPO

The infant formula company's stock finished out Monday's session down 5.60%.

A2 Milk share price remains in a downtrend

It’s been a tricky time for a2 Milk (ASX: A2M), the once high flying infant formula company and market darling.

That status was built on years of heady share price gains and earnings upgrades: the stock could seemingly do no wrong in the eyes of the market, for a long time.

Covid came, the daigou channel faced serious disruption and a2 Milk’s status as a market darling has all but crumbled. A series of downgrades saw the stock fall and the outlook over the mid-term remains uncertain. When is it that things will normalise?

On one key point, the stock has become cheap – relatively speaking, to its historic levels. To give you some idea of the gravity of the recent pull-back, way back in August 2019 we wrote:

‘a2 Milk has seen its valuation contract somewhat following the release of its full-year results – the company continues to trade ahead of the broader market – commanding a price-to-earnings ratio (PE) of 35.8, when compared to the ASX 200’s PE ratio of 19.05.’

Those results – in retrospect – would be the start of a broader slide in the stock. Its valuation would also continue to contract, with A2M last trading at 16.5x earnings, on a trailing twelve months basis.

Do you have a view on a2 Milk? Whatever you think, you can use CFDs to trade stocks and other assets, through IG’s world-class trading platform.

For example, to buy (long) or sell (short) a variety of local and international stocks using CFDs, follow these easy steps:

  1. Create an IG Trading Account or log in to your existing account
  2. Enter <Company name> in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

For investors not looking to trade stocks, you can invest in shares directly through our share trading service.

A new look company

Despite volatility and uncertainty, the company has continued to try and shake things up, recently announcing a string of new executive hires.

On Monday, 26 July, the company announced it would be appointing Amanda Hart as its new Chief People & Culture Officer (CPO).

Hart most recently worked as the Head of Human Resources (Australian and New Zealand) for Dyson Appliances, and has previous senior human resources experience in retail and electronics.

A2 Milk's CEO and MD, David Bortolussi commented on this move, saying:

'Amanda is a highly capable people and culture leader with extensive consumer industry experience with innovative brands. The skills and impact Amanda has demonstrated, and her alignment with our culture at A2MC make her an excellent candidate for the role.'

Mr Bortolussi went on to say that 'Amanda is passionate about leadership development and employee experience and I look forward to her joining the company.'

This builds on an earlier July ASX announcement where the company announced two new executive leadership team appointments.

Here it was revealed that Yohan Senaratne would be joining the company as Executive General Manager (international); and that Kevin Bush would also be taking up the role of Executive General Manager for the Australian and New Zealand Region. Both new roles would report directly into the CEO and MD.

A2M closed out Monday’s session down 5.60%.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.