At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decline. The benchmark index is currently down 0.3% to 7,419.7 points.
Here’s what is happening on the ASX 200 today:
A2 Milk shares crash on investor update
The A2 Milk Company Ltd (ASX: A2M) share price is crashing today after the release of an investor update. That update laid out management’s strategy which is focused on rebuilding the company into an exciting, innovative and sustainable growth company. However, the embattled infant formula company’s plans reveal significantly lower margins compared to pre-COVID levels. It is also aiming to grow its sales to NZ$2 billion over the next ~five years. This compares to FY 2020’s pre-COVID sales of NZ$1.73 billion.
It has also been a disappointing day for the Woolworths Group Ltd (ASX: WOW) share price. Its shares are tumbling following the release of an update at its annual general meeting. Although Woolworths revealed a 7.8% increase in group sales during the first quarter, it warned that momentum is slowing. The company advised that Australian Food sales have slowed in New South Wales as restrictions ease.
Codan’s contract win
The Codan Limited (ASX: CDA) share price is falling today despite announcing a major contract win. Codan has secured a multi-year A$37.6 million contract to supply Domo Tactical Communications software defined mesh radios to a publicly listed global technology corporation as part of a sensitive military program. Not even management stating that it is “confident of delivering a new record first half result” at its annual general meeting has been able to stop its shares from falling.
Best and worst ASX 200 performers
The best performer on the ASX 200 on Wednesday has been the Reliance Worldwide Corporation Ltd (ASX: RWC) share price with a 5.5% gain. This morning Macquarie upgraded the plumbing parts company’s shares to an outperform rating with a $5.95 price target. The worst performer on the ASX 200 has been the A2 Milk share price with an 11% decline following its update.