Shares in Bellamy’s surged after reporting a regulatory win in China, reopening a route to market for its organic infant formula.
A short time ago, the shares were up 8.5% to $8.55.
The company says its subsidiary Camperdown Powder, which produces milk power, has had the suspension of its license lifted by the Certification Accreditation Administration (CNCA) in China.
“We are pleased that Camperdown’s suspended registration has today been lifted,” says Andrew Cohen, CEO of Bellamy’s.
“Bellamy’s appreciates the important role the CNCA has in protecting Chinese consumers and the support of the Australia trade officials in assisting us throughout this process.”
Camperdown’s certification was suspended soon after Bellamy’s closed the purchase of the Victorian business.
The licence is seen as a key strategic acquisition, a trouble free route to the China market for Bellamy’s. The company paid $28.5 million for an indirect 90% interest in Camperdown Powder.
Bellamy’s spectacular growth via China suddenly stalled late last year following regulatory changes.
The fallout from falling sales 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.
The company in February posted a 47% drop in first half profit to $7.236 million following problems with sales of its organic infant formula in China.
Bellamy’s now expects full year revenue to be in the range of $220 million to $240 million, at best flat on 2015 and well below previous analyst expectations of about $330 million.
Business Insider Emails & Alerts
Site highlights each day to your inbox.