In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decline. At the time of writing the benchmark index is down 0.25% to 5,949.9 points.
Four shares that are falling more than most today are listed below. Here’s why these ASX shares are tumbling lower on Monday:
The A2 Milk Company Ltd (ASX: A2M) share price has crashed almost 9% lower to $15.66. Investors have been selling the infant formula and fresh milk company’s shares after it updated its outlook for FY 2021. According to the release, a2 Milk has been experiencing weakness in the daigou channel in FY 2021. As a result, management expects its first half sales to be down 3.9% to 10.1% compared to the prior corresponding period.
The Blackmores Limited (ASX: BKL) share price is down 2% to $67.38. This decline appears to have been driven by the update out of a2 Milk today. As Blackmores generates meaningful revenues from the daigou channel, investors appear concerned that its performance may have been impacted by the same headwinds.
The Ramelius Resources Limited (ASX: RMS) share price has fallen 1.5% to $2.02. This follows the release of the gold miner’s mineral resources and ore reserve statement. According to the release, Ramelius’ mineral resources are up 15% and ore reserves are up 32% for the year, after mining depletion. Investors may have been expecting an even stronger increase.
The Synlait Milk Ltd (ASX: SM1) share price has sunk 5.5% to $5.34 following the release of its full year results this morning. Although the dairy processor reported a 27% increase in revenue to NZ$1.3 billion, a higher cost base weighed on its profits. Synlait posted a 9% decline in net profit after tax to NZ$75.2 million. Looking ahead, management expects its profits to be largely flat in FY 2021.