Shares in Bellamy’s Australia, the maker of organic infant formula popular in China, are soaring.
They had been trending down, caught in negative sentiment over China, but a short time ago were up 13% to $12.61, still off the $16.5 high but well above a $10 low.
The shares jumped after Bellamy’s released a note to market saying it expected 2016 revenue to be higher than 2015.
Bellamy’s isn’t due to release half year results until February 19.
However, today it said unaudited management accounts for the six months December indicate revenue of $105 million and EBIT of $19 million.
To meet demand, Bellamy’s made a manufacturing deal with Fonterra Australia to produce infant formula at Darnum, in southeast Victoria.
Today Bellamy’s said its expects first deliveries from Fonterra late this financial year.
Blackmores, the vitamin maker whose business is booming on demand from Asia, this month launched in a joint venture with Bega Cheese a new infant formula product.