Bellamy’s Australia Ltd (ASX: BAL) has reported its result for the half year to 31 December 2017.
Bellamy’s Australia is the company behind the infant formula of the same name.
Here are some of the highlights compared to last year:
- Revenue increased by 47.9% to $175 million
- Day to day trading, or EBITDA, increasing by 234.3% to $34.86 million (What does EBITDA mean?)
- Profit up 209.6% to $22.4 million
- Profit per share up 183.3% to 20.4 cents
Bellamy’s said its core business revenue grew by 43.7%. The growth was mostly driven by volume and reflected a better balance between demand and supply, reduced channel conflict and improved marketing investment according to the company.
The company improved its net cash position to $85 million, with $59.1 million in operating cash flow.
Bellamy’s CEO Andrew Cohen said “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.”
The CFDA registration has been lodged for the Chinese label products and is currently in review.
The company expects the first half revenue to be higher than the second half due to the seasonality impact of Chinese online platform events, higher winter consumption in China and Chinese New Year. The company also blamed delays in the the Bellamy’s CFDA registration.
Even so, Bellamy’s upgraded revenue growth for 30% to 35% in FY18, previously the guidance was 15% to 20%. The new EBITDA margin guidance is now 20% to 23%, it was previously 17% to 20%.
Bellamy’s said that it is focused on completing the final phase of its turnaround plan and establishing long term and sustainable growth platforms.
Mr Cohen commented further “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 license and executing a long term growth plan.”
Our sales and share position are stronger, we have increased marketing investment, streamlined logistics and overhead costs and worked through aging inventory. – Cohen
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