- Bellamy’s full year revenue $329 million, up 37%.
- Net profit after tax $43.26 million, up from a loss of $809,000.
- Slower growth forecast for 2019.
Bellamy’s is back in profit, following a major slump sparked by regulatory changes in China, as revenue at the infant formula maker rose 37% to $328.7 million.
Full year net profit after tax was $43.26 million full compared to $809,000 loss in 2017.
Bellamy’s spectacular growth via China suddenly stalled in 2016 following regulatory changes.
The fallout claimed the scalp of the CEO, stripped millions of dollars from the market capitalisation and sparked a shareholder revolt which ended with a change in the board of directors.
At midday, Bellamy’s shares were up more than 5% to $11.745.
The company now says its business has stabilised with a focus on a growth strategy that recognises the significant opportunity for organic infant nutrition in China and in Asia.
“The business has transformed over the period, in terms of process and disciplines, but more importantly in terms of culture and capability,” says CEO Andrew Cohen.
“Today, Bellamy’s stands for a highly agile, passionate and commercial culture, underpinned by significantly stronger talent and capability.
“This is true at all levels, including the Board, management, in Australia, and most importantly for China.”
The revenue and earnings compared to previous years:
The company, deciding not to declare a dividend, forecasts more moderate growth in 2019, with a slowing of China cross-border growth for infant formula.
Delays are also expected on the registration of a Chinese label product to be sold exclusively in offline channels in China.
“While this channel contributed less than 6% of Bellamy’s sales in FY18, we believe it represents an important future platform for growth and continue to plan for a winning distribution model pending approval,” says Cohen.
Bellamy’s expects up to 10% revenue growth for 2019 Australian-label business.
The 2018 results in detail:
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