Bellamy’s Australia, the baby food supplier, expects its sales growth to accelerate in the second half of its financial year after reporting an 83% jump in revenue in the six months to the end of December.
Laura McBain, Bellamy’s MD and CEO, said the company was seeing “strong growing demand” for its products in Australia and in international markets.
“Subject to normal trading conditions across all of the company’s markets, Bellamy’s expects revenues in the second half of this financial year to be stronger than the first,” McBain said. “While still early in the second half, based on current trading trends and known and planned supply arrangements, Bellamy’s forecasts group revenue for the 2016 full financial year to be in the range of A$240m to A$260m.”
The Bellamy’s boss indicated investment would mean its operating profitability would match the level generated in the first half of the financial year. “Bellamy’s is committed to investing in its people and operating structures to maintain growth on a sustainable basis and, therefore, expects EBIT margin to be broadly in line with the half-year results.”
In the six months to 31 December, Bellamy’s generated revenue of A$105.1m, compared to A$57.4m in the first half of 2014/2015. McBain said there had been “strong growth” in Australia. The company also upped its prices during the period to cover the cost of organic ingredients. “This, together with improved supply chain efficiencies resulted in the company’s margins trending toward a more normal industry average,” McBain said.
EBIT reached A$19.2m, over four times the A$4.4m booked in the first half of the previous financial year. Net profit after tax stood at A$13.7m, compared to A$3.2m a year earlier.