UPDATE 1-NZ's a2 Milk cuts annual sales target as daigou woes continue
Adds CEO comment, details on outlook,
May 10 (Reuters) - New Zealand's a2 Milk Co Ltd ATM.NZ on Monday cut its full-year sales forecast and said it would review its growth strategy in response to continued disruptions and excess inventory in its key Chinese sales channels.
Since the pandemic, the company has faced significant challenges in its "daigou" channel - where people buy products outside China for Chinese consumers and take them back to China - due to fewer tourists and international students.
"It is clear that the actions taken to address challenges in the daigou and cross-border e-commerce channels will not result in sufficient improvement in pricing, sales and inventory levels to meet our previous guidance," Chief Executive David Bortolussi said.
A2 now expects 2021 revenue between NZ$1.20 billion and NZ$1.25 billion ($873.5 million to $909.9 million), down from its earlier forecast of NZ$1.40 billion.
It added it would take "more aggressive actions" to address excess inventory, which could also affect its financial performance in the first quarter of fiscal 2022. nNZW29sSrR
($1 = 1.3738 New Zealand dollars)
(Reporting by Shashwat Awasthi in Bengaluru; Editing by Daniel Wallis and Peter Cooney)