Tasmanian based organic food and baby formula company, Bellamy’s Organic has had half a billion dollars stripped off its value after a weakness was revealed in its China business.
The company released an update to the ASX revealing shares fell more than 40 per cent on Friday. It is reported the expectations of last month’s Singles’ Day – China’s largest online shopping event – was not as successful as the company hoped.
The company said a “temporary volume dislocation” in China because of regulatory changes could have impacted. This could result in the companies revenue for 2016-17 being about $240 million. Analysts had been expecting revenue of about $368 million in the current financial year.
The stock had recovered by five per cent before midday.