Bellamy’s, the maker of organic infant formula exported to China, has extended its trading halt to January.
The company has been in voluntary suspension since December 14 while it works on an announcement on the impact of trading conditions on financial results.
Earlier this month the Tasmania-based company warned of a road bump in sales because of disruption in China from regulatory changes.
Its shares have halved this month to $6.68.
The company says revenue is up 24% to $93 million since the start of the financial year to November 20.
But there’s been “temporary volume dislocation” in China due to regulatory changeover. This will continue until product registrations are completed.
First half revenue is expected to be about $120 million but the second six months could be flat if current trends continue, the company says.
This would put full year revenue at $240 million, well below analyst expectations of about $330 million.
“Bellamy’s has experienced restructuring of the sales channels into China since the regulatory announcements,” the company said earlier this month.
“Management has worked closely with the various e-commerce networks to build stronger, more efficient routes-to-market that are expected to support increased demand following the regulatory change over.”