Bellamy's trades again
Recommendation
After a one-month suspension, Bellamy's resumed trading today with its shares closing 20% lower at $5.35.
Revenue for 2017 is forecast to be in the range of $220m to $240m with EBIT expected to be between $22m and $26m. Inventory levels have now ballooned out to between $105m and $110m.
The EBIT forecast was adversely impacted by the renegotiation of key contacts with suppliers, which is expected to result in Bellamy's paying shortfall payments of between $11m and $13m each year for the next two years.
Laura McBain will be leaving the company, to be replaced in the interim by Chief Operating Officer Andrew Cohen.
We will review the announcement in further detail, and provide an update early next week. In the meantime the company is UNDER REVIEW.
Disclosure: The author owns shares in Bellamy's.