Infant formula maker Bellamy’s has recorded a full-year profit of A$43.27 million, boosted by higher sales and cost savings.
Bellamy’s rebounded from A$809,000 loss in 2017. The infant formula maker’s revenue lifted 37 per cent to A$328.7 million.
“Our FY18 results set a new high for the business, delivering a 37 per cent increase in sales and a 65 per cent increase in EBITDA, and represents a material turnaround of our business. We have established a more sustainable business model, including stronger revenue management disciplines, material savings in cost of goods and logistics, and greater investment in our brand, product and marketing,” Bellamy’s CEO Andrew Cohen said in a statement.
Bellamy’s expects its Australian business to grow revenue by about 10 per cent during the new financial year, despite a slowdown in Chinese market growth and stiff competition, according to AAP.
It has also submitted its application for its infant formula products for the Chinese market to the State Administration for Market Regulation (SAMR) in China last December 2017.
“SAMR registration of our Chinese-label formula is important to concluding the turnaround and we remain confident in our technical application and prospects for registration. We continue to plan and organise for a winning model in the China offline channel,” added Cohen.
AAP reported the Chinese-label formula products plays a vital role in concluding the turnaround of the business. These will be exclusively sold to different offline channels in China and contributed 6 per cent of FY18 sales to the company.
The infant formula maker head honcho said in a statement he is expecting more moderate growth in 2019. He said Bellamy’s is targeting to build a A$500 million revenue business by FY21. By 1010 AEST, Bellamy’s shares were down 5.4 per cent to A$10.48.
