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Bellamy's Organic, once hugely popular in China, announces trading halt
Monday, 12 Dec 2016 06:22:35
Laura McBain said Bellamy's success in China was built on safety and trust. (ABC News: Carla Howarth)
Tasmanian baby formula company Bellamy's Organic, which earlier this year recorded 331 per cent growth in revenue from sales to wealthy Chinese consumers, has been put in a trading halt after its share price plummeted.
The Launceston-based company told the stock exchange it needed time to consider its expected financial results.
Bellamy's shares tumbled 40 per cent in a day on December 2 (dropping from $12.01 to $6.85) when the company declared new regulations in China were hurting sales and prices.
The company said other brands unlikely to survive the rule changes were flooding the market with discounted products.
They were "liquidating inventory at discounted prices", Bellamy's told the ASX.
Bellamy's had been a steadily rising stock, climbing from $1.60 to more than $15 last year.
Its marketing focussed on selling organic baby food to wealthy people in China.
Bellamy's CEO Laura McBain, Telstra's Business Woman of the Year in 2013, said a key to her company's growth was social media engagement.
She said the brand "resonates in the minds of parents in China as a brand offering safety and trust".
To June this year, the company's profit was $38.3 million, compared with $9 million the previous year.
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