Company News Summary
Bellamy's Australia Provides Business Update
Original announcement: Business Update
Bellamy's Australia provided business update stating that based on internal management accounts, the Company is providing guidance for expected revenues, EBIT and EBIT margin for 1H17 and FY17. This is subject to finalisation of the half year accounts as well as external audit review. The Company's revenue and profitability have been impacted by lower than expected demand for the Company's infant milk formula, which has also led to increased inventory levels, excess ingredients and shortfall payments to suppliers. The Company has responded by amending a key manufacturing contract with Fonterra and implementing measures to reduce production and better manage inventory levels. The Board has also initiated a cost management program to reduce expenses throughout the business.
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