A2 Milk boss says China formula market in steep decline

Carrie LaFrenzSenior reporter

Updated Nov 16, 2023 – 11.38am, first published at 10.10am

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Key Points

The a2 Milk Co remains on track to grow sales to $2 billion and improve EBITDA margins in the ‘teens’ over the medium term.
It expects China’s infant formula market conditions to be more challenging this year.

A2 Milk Co boss David Bortolussi has warned that China’s infant formula market is in a steep decline and will be a more challenging place to do business this year.

The dual-listed company is heavily reliant on the Chinese market, which fell by double-digits in 2023 due to fewer newborns and lower shelf prices.