The A2 Milk Co Ltd (ASX: A2M) share price is down 1.7% in early morning trade on Monday, while the S&P/ASX 200 Index (ASX: XJO) is down 0.9%.
Shares in the ASX 200 dairy stock are currently trading for $6.26 after closing Friday at $6.37.
This comes as the company reports the completion of its NZ$149 (AU$139 million) on-market share buyback program.
What happened with the share buyback?
A2 Milk first announced its intention for an on-market share buyback of up to NZ$150 million on 29 August, when the company released its full-year results.
The A2 Milk share price closed up 10% on the day.
The buyback was enabled by some strong results. Those included a 20% year-on-year increase in revenue to NZ$1.45 billion and a 42% leap in net profit after tax (NPAT) to NZ$115 million.
Commenting on the share buyback at the time, A2 Milk CEO David Bortolussi said, âOur on-market buyback of up to NZ$150 million demonstrates effective capital management and the improved confidence we have in our strategy, execution and outlook.â
Today that buyback is complete.
The company reported that it acquired a total of just under 21.7 million shares. That works out to 2.9% of issued capital.
Excluding brokerage costs, the average price was NZ$6.87 per A2 Milk share, for a total consideration of approximately NZ$149 million.
As part of the buyback, those shares have been cancelled. That leaves A2 Milk with a total of 721,976,214 outstanding ordinary shares.
With the buyback complete, A2 Milk reported it has further reduced its share capital in its statement of financial position. The company expects to report share capital of around NZ$100,000 for FY23.
A2 Milk share price snapshot
As you can see in the chart below, the A2 Milk share price has been a strong performer over the past full year, up 15% despite today’s retrace.
The post A2 Milk share price slides amid $139 million buyback completion appeared first on The Motley Fool Australia.
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More reading
- At almost $7, can the A2 Milk share price go any higher?
- What caused the A2 Milk share price to spill almost 6% in February?
- ‘Result was incredible’: 3 ASX 200 shares Jun Bei Liu would buy now
- Why A2 Milk, Altium, Cogstate, and Ingenia shares are sinking today
- Is the A2 Milk share price good value after its post-results selloff?
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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