Bellamy’s, the Tasmanian company making organic baby formula so loved in China, posted its annual results today with revenue and profits driving a dividend payout three times higher than 2015’s.
The company declared a fully franked final dividend of 7.8 cents a share, up 173%. This brought the full year payout to to 11.9 cents, a rise of 316% on 2015.
And that payout represents just 30% full year profits. Most big companies pay out 60% to 80%.
The 2016 numbers speak for themselves:
- Net profit after tax up 322% to $38.3 million
- Revenue 95% higher at $244.6 million
- EBIT (earnings before interest and taxes) up 342% to $54.3 million
- The company has about $32.3 million in cash at the bank.
- Revenue from China grew 331% to $62.1 million.
Demand for Bellamy’s baby formula is so high that the company had to strike a manufacturing deal with Fonterra Australia to produce infant formula at Darnum, in southeast Victoria.
The company’s shares are trading at $14.27. Two years ago it was about $1.30.
CEO Laura McBain says the growth in earnings has been so strong because of Bellamy’s brand reputation and relationship with parents.
“We are passionate about producing world class, safe, clean, organic products so that babies can have a pure start to life,” she says.
“This passion has underpinned our brand, making us the leader in organic food and formula products for babies and toddlers in Australia, with a growing strong reputation among Chinese parents.”
This chart shows the amazing rise in revenue.
McBain says the strong growth in China across all of distribution channels continues.
The company also has online flagship stores via Tmall.com, where Bellamy’s is in the top 10 brands for infant formula, JD.com and VIP.com.
McBain the recent regulatory changes in China, a framework for cross border e-commerce channels and product registration covering domestic and foreign infant formula products, are positive for Bellamy’s.
“Having anticipated the regulatory changes, we were able to respond quickly and efficiently, she says.
“We have a positive view of the regulatory changes announced and believe they will further strengthen Bellamy’s growth opportunities in China where the Bellamy’s brand and our trusted, safe, organic products are highly valued by consumers.”
The priority for 2017 is to continue to build distribution in China, both online and offline.
Here are the 2016 results in detail:
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