Bellamy’s shares hammered

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Shares in Bellamy’s were hit again in early trade following a sudden road bump in sales of its infant formula in China.

A short time ago, the shares were down 5% to $6.50, adding to the 43% fall on Friday.

The Tasmanian-based company warned of disruption in China because of regulatory changes.

The organic baby formula maker says revenue is up 24% to $93 million since the start of the financial year to November 20.

However, there’s been “temporary volume dislocation” in China due to regulatory changeover. This will continue until regulatory registrations are completed.

“Bellamy’s has experienced restructuring of the sales channels into China since the regulatory announcements,” the company says.

“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.”

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.

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