Bellamy’s shares rise as licence restored

bellamysShares in infant formula maker Bellamy’s Australia have hit an eight month high after Chinese authorities lifted a licence suspension on the company’s recently acquired Camperdown canning facility.

The registration of the Camperdown Powder canning site in Victoria has been reinstated by the Certification and Accreditation Administration of the People’s Republic of China (CNCA), Bellamy’s said.

The company’s shares gained 32 cents, or 4.1 per cent, to $8.20, their highest level since early December.

Foreign suppliers of Chinese-labelled infant formula products in China must register the canning facility used to blend and pack the products with the CNCA.

Chinese authorities suspended registration of Bellamy’s Camperdown canning facility in Victoria on July 7 after a third-party’s allegations relating to historical filing and records, and to certain previous quality issues, the company said.

Chief executive Andrew Cohen on Wednesday thanked Australian trade officials for their assistance as the company responded to CNCA requests.

“‘Bellamy’s appreciates the important role the CNCA has in protecting Chinese consumers and the support of the Australia trade officials in assisting us throughout this process,” he said.

The suspension had not impacted the sale of the company’s products, which are manufactured by other companies, and Bellamy’s intends to can its products at the Camperdown facility from the second half of 2018.

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