The turnaround of Bellamy’s, the maker of organic infant formula loved by the Chinese market, is starting to work with strong revenue and profit growth over the first half of 2018.
Revenue was up 48% to $174.91 million for the six months to December and net profit after tax jumped 209% to $22.4 million.
Bellamy’s upgraded guidance for full year revenue growth to between 30% and 35%, from 15% to 20%, and the earnings margin to between 20% and 23%, from 17% to 20%.
The company’s spectacular growth via China suddenly stalled in 2016 following regulatory changes.
The fallout claimed the scalp of CEO Laura McBain, stripped millions of dollars from the market capitalisation and sparked a shareholder revolt which ended with a change in the board of directors.
“While there are still challenges to navigate, we are pleased to see that our turnaround plan continues to gain traction and the overall health of the business has improved,” says Bellamy’s CEO Andrew Cohen.
“Our sales and share position are stronger, we have increased marketing investment, streamlined logistics and overhead costs and worked through aging inventory.
“While we recognise these positive initial results, we remain mindful of the inherit risk of a dynamic and highly regulated market. Our focus is now on obtaining our CFDA (China Food and Drug Administration) license and executing a long term growth plan.”
The first half 2018 results at a glance:
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