Shares in A2 Milk have plunged after the dairy company announced its revenue and earnings forecasts for the 2021 financial year had once again changed.
Its shares as of 11.45am were sitting at $6.45, down about 15 per cent on Friday.
It comes after the dairy company released a trading update and revised outlook today for the 2021 financial year.
A2 Milk said "trading dynamics" in China's infant nutrition market had continued to be challenging.
With "more aggressive actions" needed to address "excess inventory" it said its 2021 revenue would take a hit, which would potentially continue into the start of 2022.
Its market announcement said its board was actively considering capital management initiatives, which included a potential share buy-back.
A2 Milk said it was now targeting revenue for the 2021 financial year of $1.20 billion to $1.25 billion.
"It will take some time to rebalance inventory levels and restore channel health," a2 Milk said.
"An immediate recovery is not expected and a further update for FY22 will be provided at the Company’s results in August."
The drop in shares also comes as a2 Milk said its chief executive Asia Pacific, Peter Nathan, had resigned.
However, he will remain with a2 for some time to ensure a "smooth and orderly transition".
A2 Milk chairman David Hearn said Nathan had contributed significantly to the company.
"Peter has been a driving force behind the business and integral in building our brand since he started with the Company over a decade ago," he said.