A2 Milk Lowers Guidance as Formula Supply Disrupted in China

New Zealand’s a2 Milk slashed its revenue and earnings forecasts due to supply chain disruptions impacting shipments to China, its largest market. The company cited geopolitical tensions—including the Iran war—as a key factor delaying cross-border logistics and distribution channels. China’s infant formula demand remains high, but a2 Milk’s reduced guidance reflects prolonged shipping bottlenecks and regulatory hurdles in the region. The revised outlook underscores broader trade vulnerabilities for dairy exporters reliant on Asian markets amid escalating global conflicts. Investors may face short-term volatility as a2 Milk adjusts operations, though long-term demand for premium formula in China remains stable.