Bellamy’s Australia has more than tripled its first-half profit as its turnaround plan gains traction, but the infant formula supplier is still waiting on a licence to sell more products in stores in China.
Net profit for the six months to December 31 rose to $22.4 million from an impairment-heavy $7.2 million in the prior corresponding period.
Revenue lifted by nearly 48 per cent to $174.9 million, driven by an increase in volumes and a small contribution from the acquisition of the Camperdown Powder manufacturing business.
But the company has deferred a major upgrade of Camperdown pending the outcome of its China Food and Drug Administration licence application.
Chief executive Andrew Cohen said the CFDA may take six months or more to consider the application for licence, which is required to sell Chinese-labelled products in stores in China.
“Our focus is now on obtaining our CFDA licence and executing a long-term growth plan,” Mr Cohen said.
The company does not expect any sales of Chinese-labelled products in the second half because of delays in securing regulatory approval.
Bellamy’s said revenue would be skewed toward the first half, partly because big online sales events in China occur in that period and consumption in China is higher during the northern hemisphere winter.
Nonetheless, Bellamy’s upgraded its full-year revenue growth guidance to between 30 and 35 per cent, from between 15 and 20 per cent.
“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,” Mr Cohen said in a statement.
Shares in Bellamy’s dropped 94 cents, or 5.9 per cent, to $14.90.
BELLAMY’S AUSTRALIA LIFTS H1 PROFIT
* Net profit $22.4m v $7.2 in pcp
* Revenue up 47.9pct to $174.9m
* No interim dividend, unchanged