Tasmanian-based baby food and formula company Bellamy’s Australia Limited is back into profit as it works to put a tough period behind it.
Launceston-headquartered Bellamy’s, which endured a share price crash, China access issues and a board coup in recent years, reported net profit after tax of $42.8 million for 2017-18, up from an $800,000 loss in the previous financial year.
Revenue jumped by 37 per cent to $329 million and earnings before interest, tax, depreciation and amortisation increased from a wafer thin $1.4 million in 2016-17 to $64.6 million.
… the Bellamy’s turnaround plan continues to demonstrate results in terms of revenue growth, profitability, cashflow and the balance sheet.Andrew Cohen
“ … the Bellamy’s turnaround plan continues to demonstrate results in terms of revenue growth, profitability, cashflow and the balance sheet,” chief executive Andrew Cohen said.
“The balance sheet has strengthened, with $87.6 million held in cash, zero debt and $39 million in supply chain investments, including the CNCA-licensed (Certification and Accreditation Administration of the People's Republic of China) Camperdown (canning) facility and establishment of a Tasmanian organic milk pool in partnership with Fonterra.
“Beyond the numbers, the business has transformed over the period, in terms of process and disciplines, but, more importantly, in terms of culture and capability.”
He said that having stabilised the business, Bellamy’s was now focused on a three-year growth strategy that recognised the significant opportunity for organic infant nutrition in China and wider Asia.
“The next year will see the roll-out of a number of key initiatives in this plan, including a premium brand refresh that we believe will significantly increase our addressable market and brand equity access across all geographies,” Mr Cohen said.
In the current half-year, he said, the food range would be refreshed and extended and stocked at Woolworths supermarkets.
It was already carried by Coles and pharmacies in Australia.
Mr Cohen said Bellamy’s remained confident in its application for Chinese registration of Chinese label product sold exclusively in offline channels in China.
He said it contributed less than 6 per cent of sales in 2017-18, but had potential for important growth.