A2 shares dive 13pc

SHARES in The A2 Milk Company have dropped 13 per cent after the New Zealandbased dairy firm said full-year sales revenue would be lower than analysts had forecast.

A2 said on yesterday it expects revenue for the 12 months to June 30 to rise as much as 67 per cent to between $NZ900 million and $NZ920 million ($826.8 million and $845.2 million), but that was lower than analysts had expected.

Deutsche Bank had forecast $NZ923 million in sales after A2 unveiled a strong first-half result in February, and reiterated its expectation in March. A2’s ASX-listed shares fell as much as 20 per cent at the open before recovering slightly.

They ended the session down $1.59, or 13.1 per cent, at $10.54, a three month low.