Bellamy’s upgrades its revenue guidance
Bellamy’s has upgraded its revenue and profit guidance for its 2018 financial year.
The infant nutrition producer said based on its financial results for the first half of its 2018 financial year, it is now expecting it will achieve 30-35 per cent revenue growth for its core business (excluding Camperdown) when compared to its 2017 financial year results. On 11 October 2017, Bellamy’s target for its 2018 financial year was 15-20 per cent.
Bellamy’s now also expects earnings before interest, tax, interest, depreciation and amortisation (EBITDA) margin guidance to be 20-23 per cent for its 2018 financial year. It was previously forecasted to sit at 17-20 per cent. This also excludes Bellamy’s Camperdown business, which it still expected to generate an EBITDA loss of AUD $1-2 million.
Bellamy’s said the guidance is subject to contingent liabilities including class actions against the company.
The company expects its first half revenue to be higher than its second half due to a number of reasons including Chinese winter and New Year falling in the first half. All of its Chinese label sales will also occur in the first half due to delays in receiving China Food and Drug Administration (CFDA) registration.
Bellamy’s said that it will inform the market once it receives a response for its CFDA application.
Rest of Camperdown acquired by Bellamy’s
Bellamy’s further used its ASX update to inform it has acquired the remainder 10 per cent share of the Camperdown Powder canning facility in Braeside, Victoria.
Bellamy’s will pay AUD $28.5 million for the remaining 10 per cent from Buena Investments. Acquisition of the 20 per cent is however conditional on Bellamy’s receiving its CFDA registration.
Chief Executive Officer of Bellamy’s, Andrew Cohen, said Bellamy’s “are pleased to see that our turnaround plan is continuing to gain traction.”
“The acquisition of the remaining equity in Camperdown is a further step in restructuring our business and provides a foundation for building strategic manufacturing capability,” Cohen said.
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