Unfortunately for its shareholders, the Wellard Ltd (ASX: WLD) share price is on course to make it two days of heavy declines in a row.
In afternoon trade the cattle exporter’s shares are down 16% to 12.2 cents. This means its shares have lost over 30% of their value this week and 44% since the start of the year.
Yesterday Wellard advised that it expects to post a full-year loss before tax of between $55 million and $65 million, excluding impairments on vessels.
This is largely the result of a reduction in demand from South East Asian markets due to sustained high cattle prices in Australia.
This loss is likely to have a very negative impact on its ongoing business, especially with the company being in breach of various banking facilities. Management is working with its banks on the provision of waivers.
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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.