Fast growing dairy processor Bellamy's Organic has reportedly encountered a few bumps in the road in the form of lower than expected Singles Day sales and regulatory changes in China.
The infant formula maker says although its total revenues are still 24 per cent higher at $93 million for the year to 20 November 2016 compared to same period last year, they have been lower than expected.
“Bellamy’s 2016 Singles Day sales were significantly stronger compared to last year’s performance, however below the company’s expectations. The expected uplift in China market sales in the period following Singles Day have also been softer than anticipated,” said its CEO, Laura McBain.
“We more than doubled revenue growth on Singles Day across all e-commerce platforms compared to last year. Bellamy’s Step 3 was the 9th best performing product across T-mall Global on the day. The growth however fell short of our expectations,” she said.
Moreover, Bellamy’s warned it would continue to experience temporary volume dislocation until regulatory registrations are completed in China.
“Brands that are unlikely to gain registration are liquidating inventory at discounted prices, which impacts both imported brands such as Bellamy’s and the market overall,” the company said.
Bellamy's said, however, the current China regulatory changes were positive for the company as a high quality premium brand in high demand, and as such, it expected to see continued momentum in Australia and South East Asia for its products.
