These were the 5 worst performing ASX 200 shares in 2021

These ASX 200 shares were sold off in 2021…

Scared, wide-eyed man in pink t-shirt with hands covering mouth

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It was a stunning 12 months for the S&P/ASX 200 Index (ASX: XJO) in 2021. Over the period, the benchmark index climbed 13% higher.

Unfortunately, not all ASX 200 shares climbed with the market. Here's why these were the worst performers over the period:

PolyNovo Ltd (ASX: PNV)

The PolyNovo share price was the worst performer on the ASX 200 in 2021 with a disappointing 60.5% decline. Investors were selling the medical device company's shares after its sales fell well short of expectations in FY 2021. In addition, the surprise resignation of its Managing Director, Paul Brennan, weighed on sentiment. Mr Brennan's interactions with senior staff and his management style led to increasing differences between him and the Board. PolyNovo also lost its Chief Operating Officer, Dr. Anthony Kaye, to CSL Limited (ASX: CSL) during the year.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price wasn't far behind with a decline of just over 60% during the 12 months. This fund manager's shares came under pressure last year amid concerns over the underperformance of its flagship fund. This is expected to weigh on performance fees in the near term and could impact fund inflows. In addition, late in the year the company's shares were sold off after it announced the termination of the St James's Place mandate. Magellan advised that the mandate represents approximately 12% of its current annual revenues.

Appen Ltd (ASX: APX)

The Appen share price was out of form and dropped 55% over the 12 months. A good portion of this decline came after the release of its half year results in August. Appen reported a 2% decline in revenue to US$196.6 million and a 14.3% fall in EBITDA to US$27.7 million. In addition to this, concerns over structural changes in the artificial intelligence/machine learning data labelling industry have been weighing on sentiment. There are fears that major tech companies will bypass Appen by taking things in-house.

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price was unsurprisingly among the worst performers on the ASX 200 in 2021 with a decline of 52.3%. Investors were selling down this struggling infant formula company's shares after a disastrous performance in FY 2021. This was driven by a significant reduction in demand for its products in China and the daigou channel and poor inventory management. And while the company provided an investor update which outlined its recovery plans, it wasn't enough to stop its shares from falling. A2 Milk guided to significantly lower margins compared to pre-COVID levels and a sales target of NZ$2 billion over the next ~5 years. The latter compares to FY 2020's pre-COVID sales of NZ$1.73 billion.

AGL Energy Limited (ASX: AGL)

The AGL share price continued its multi-year decline in 2021 and dropped 48.6% over the period. Investors were selling off this energy company's shares amid weak wholesale prices and its bleak outlook. Not even the release of its demerger plans has been able to give its shares a boost. Those plans will see the company split into two. AGL Energy is planning to become Accel Energy, an electricity generation business focused on the accelerating energy transition. It will then demerge a new entity, AGL Australia, which will be a multi-product energy-led retailing and flexible energy trading, storage and supply business.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd and POLYNOVO FPO. The Motley Fool Australia owns and has recommended Appen Ltd. 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 Bruce Jackson.

More on Share Fallers

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Healius, Light & Wonder, REA Group, and Regis Resources shares are falling today

These shares are ending the week in the red. Let's find out why.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why ANZ, Brainchip, Light & Wonder, and Pilbara Minerals shares are falling today

These shares are tumbling on Thursday. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Aurizon, JB Hi-FI, Nuix, and Platinum shares are tumbling today

These shares are falling on hump day. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why HMC Capital, Platinum, Sigma, and Skycity shares are dropping today

These shares are having a tough session on Tuesday. But why?

Read more »

Oil worker using a smartphone in front of an oil rig.
Energy Shares

ASX 200 energy shares plunge on shock OPEC move

ASX 200 energy shares like Woodside and Santos are tumbling on Monday. Let’s find out why.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Brainchip, Helia Group, Reliance Worldwide, and Westpac shares are dropping today

These shares are starting the week in the red. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Block, Corporate Travel Management, Judo, and Zip shares are sinking today

These shares are missing out on the good times on Friday. But why?

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Share Fallers

These were the worst-performing ASX 200 shares in April

These shares were out of form last month. But why?

Read more »