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.
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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.