Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

A2 Milk share price falls as key leader resigns

A2 Milk shares continue to fall as it was announced yesterday that the company’s Chief marketing Officer is set to depart.

The a2 Milk (ASX: A2M) share price fell 1.19% yesterday – closing out the session at $11.62 per share.

This modest fall comes off the back of news that the company's Chief Marketing Officer – Susan Massasso – is planning on stepping down from her role by the end of February 2020.

In saying that, she will remain a part of A2’s senior leadership team up until June 2020.

Speaking of this managerial shakeup, esteemed a2 Milk Chief Executive Officer, Jayne Hrdlicka said:

'Susan has been instrumental in setting the global marketing strategy for the company and I am delighted that Susan will remain with the business until the end of the financial year to assist with implementation and to ensure the brand strategy focus is maintained, while supporting the transition of a new CMO.'

Operationally efficient as ever, the company noted that it would commence searching for a Chief Marketing Officer immediately.

Commenting on her own departure, Susan Massasso said:

'It has been a great privilege to be part of such an extraordinary company. It has been an incredible six year and I’m looking forward to supporting Jayne and the leadership team going forward.'

No reason was given for her resignation.

Practise trading Australian stocks with an IG demo account now

A2 Milk share price: why marketing is the future

A2 Milk (ASX: A2M) has indeed been stepping up its marketing spend in recent times, spending NZ$135.3 million or 10.4% of sales in FY19.

This represents a year-over-year increase of 82.7% – as A2 Milk rushes to grow its brand presence and revenue in China and the US.

'We anticipate continued growth in revenue across our key regions supported by increasing brand and marketing investment in China and the US,' said the company during its latest full-year results release.

Indeed, as A2M flagged in its FY19 results, it expects to bump up its marketing spend to 12% of revenue (opposed to 10.4% in FY19), a fact that many brokers flagged as a potential concern.

Today’s news ultimately forms part of a broader share price downdraft for a2 Milk. As noted above, analysts and investors already seemed concerned that a2 Milk was going to have to spend more (on marketing) to generate significant (read, possibly comparable) revenue growth going forward.

And while such an equation seems a necessary evil whichever way you cut it: The simple fact is it’s much harder to double NZ$1.3bn in revenue than it is NZ$130m.

The market though, seems well aware of that fact, having bid the company's stock down 32% since July.

This all also underscores another fact: that given A2’s reliance on an aggressive marketing plan for growth, finding CMO of Susan Massasso’s calibre will likely prove paramount.

Let’s hope a2 Milk (ASX: A2M) finds one.

This information has been prepared by IG, a trading name of IG Markets 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. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

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 Sunday. 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 spread betting and CFDs.

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