Bellamy’s upgrades guidance after ASIC infringement

bellamysBaby Formula manufacturer Bellamy’s has upgraded its FY18 guidance on positive early trading, increasing its revenue growth target to 15 – 20 per cent from 5 – 10 per cent.

The market disclosure comes only a day after Bellamy’s announced a deal with corporate regulator ASIC that’s seen it pay a $66,000 fee for allegedly breaching its continuous disclosure obligations to the ASX late last year when it found itself in turmoil.

Bellamy’s agreed to accept the infringement notice and pay the penalty as “a way to conclude the matter” without admitting liability. Bellamy’s chairman John Ho said yesterday that the company’s new board and management team would review its disclosure reporting procedures following the payment.

On Thursday morning Bellamy’s, said that it now anticipates EBITDA margin growth up 17 – 20 per cent, up from 15 – 20 per cent, excluding its Camperdown operation which is still facing challenges and is forecasted to post a $1-2 million EBIDTA loss in FY18. The company expects 1H18 growth to exceed 2H growth due to seasonality and a delay in its registration with Chinese regulators (CFDA).

“While Bellamy’s sees positive momentum in its core business, there are still challenges to navigate (including CFDA registration) as it implements its turnaround plan,” the company said.

“Bellamy’s will continue to update the market in relation to the above guidance in accordance with its continuous guidance obligations.”

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