The Chairman, Rob Woolley, today announced that the Board of Directors has appointed Andrew Cohen as the Company’s acting Chief Executive Officer.

11/1/2016 On Wednesday, the company said it expects revenue for 2017 to be A$220 million to A$240 million. In December, it said it expected 2017 revenue of about A$240 million.

In 2016, the company reported revenue of A$244.6 million.

Laura McBain will be temporarily replaced as CEO by Chief Operating Officer Andrew Cohen while the board searches for a permanent replacement, Bellamy’s said.

Bellamy’s’ supply chain, inventory levels as at 31 December 2016 are expected to be approximately $105m to $110m, with finished goods expected to comprise approximately 75% of this balance.
A part of Bellamy’s strategy is to subcontract manufacturing of its products. Its key manufacturing contracts have minimum volume commitments to secure access to the necessary manufacturing facilities. Under its contractual arrangements with Fonterra and other suppliers/manufacturers, where the Company is not able to fulfil minimum volume commitments, it is required to make shortfall payments.
Two additional grounds for termination by Fonterra have been added. The first applies if a person or group of persons acquires 50% or more of Bellamy’s voting shares. The second applies if a person or group of persons acquires 30% or more of Bellamy’s voting shares and, in Fonterra’s opinion, that person or group has effective control of Bellamy’s
Currently, Fonterra only manufactures one of Bellamy’s three infant milk formula products and under the manufacturing contract the Company is not restricted from manufacturing its own products.
Shortfall payments are reflected in the revised reported EBIT forecasts for FY17 and will be expensed in the year they are incurred. Shortfall payments in respect of FY17 volumes are not payable until FY18. Under its contractual arrangements with key suppliers/manufacturers, Bellamy’s projects over the next 2 years that shortfall payments would range between $11m and $13m each year depending on the Company’s underlying sales growth and production requirements.
The Company’s expected EBIT for 1H17 is $12m to $14m, representing an EBIT margin of 10% to 12%. The Company’s expected EBIT for FY17 is $22m to $26m. [EPS at about 0.2$]
The Company’s profit after tax in 1H17 is expected to be between 6% and 9% of revenue, reducing
to 4% to 6% in 2H17, reflecting the impact of the factors outlined above plus interest expense on
The Company’s expected gross profit margin and EBIT reflects the impact of:
 Lower than expected sales volumes and changes in the Company’s customer mix;
 Manufacturing shortfall payments;
 Increased cost of organic ingredients in order to secure supply; and
 Previously announced additional investment in marketing, people and promotions
“Laura has overseen the growth of the Company over the past decade since she joined Bellamy’s as General Manager in 2006, including the expansion of Bellamy’s markets and its brand. I would like to thank Laura for her contributions to Bellamy’s over the last 10 years.”
Annual Report 2016
agreements with Fonterra and Tatura Milk Industries.

With more than 30 distributors, Bellamy’s products are now stocked in over 2,000 stores across China, predominantly in mother and baby chain stores.
Even though we estimate our market share to currently be less than 1% of the overall China market, our current market share on online channels was around 3% at the end of June.
partnership with BabyTree, the largest parenting website in China
we view the regulatory changes announced positively and believe they will further strengthen Bellamy’s growth opportunities in China. 【???】
【milk formula 】Bellamy’s produces two variants of each product – one is made for the Australian and export markets, while the other is suitable for China only as it is designed to meet the different labelling and compositional requirements in China.
Sales of non-formula products have grown by 8% over the last 12 months. In the Pharmacy channel Bellamy’s accounts for more than 50% of baby food sales, and is the #1 brand in cereal and pastas and the fastest growing brand in ready to serve pouches.
Bellamy’s organic supply chain is a key strength. As such, we continue to invest in upstream suppliers by offering longterm supply contracts on terms that recognise the long-term vision and planning required for sustainable organic food production.
Tatura Milk Industries (TMI) continues to be a key manufacturing partner for Bellamy’s. Our annual production volumes are supported by a six-year supply agreement signed in July 2015, and this continues an eight-year relationship of producing quality infant formula to exacting standards.  Organic formula production deliveries from Fonterra started from the first quarter of FY17.
This has seen the number of employees increase by 50% over FY16 across both Australian and Asian locations

As at 30 June 2016, Bellamy’s share price was $10.20 (30 June 2015: $4.37). This is significant growth since listing on 5 August 2014 at $1.30.

Board declared a fully franked interim dividend of 4.1 cents per share. A fully franked final dividend of 7.8 cents per share was declared by directors on 19 August 2016.  The total dividends paid and declared for FY16 represent a payout ratio of 30% of FY16 profit after tax.

Ingredients on hand at 30 June 2016 comprised approximately 50% of overall inventory value at that date.

Depreciation 256 (447)
Amortisation 51  (0)
(Increase)/decrease in inventories (54,135) ((9,412))

At 30 June 2016 there is $1,519,000 (2015: $104,000) of capitalised costs.