The company’s shares jumped 36¢ in early trade to $8.72 but as investors absorbed the result – down from a $38.33 million net profit the previous year – the stock started sinking fast and ended the day 7.5 per cent, or 63¢, lower at $7.73.
Bellamy’s recorded a normalised net profit of $28.18 million for the year, down 26.5 per cent, but the bottomline was eroded by costs such as a previously flagged $27.5 million one-off payment to supplier Fonterra.
Revenue rose 2.6 per cent to $240.18 million and normalised earnings before interest, tax, depreciation and amortisation (EBITDA) fell 21.6 per cent to $42.79 million.
«The last year has been challenging on many fronts for the Bellamy’s business,» chief executive Andrew Cohen said.
«However, together with the new board and management team, we’ve set a clear direction and turnaround plan which is on track. This plan has resulted in a number of significant one-off restructuring costs in the FY17 year, and impacted results.
«We believe this investment was critical to re-setting the business and rebuilding a foundation for future growth.»
Source: SMH
Link: http://www.smh.com.au/business/investors-lash-bellamys-as-it-swings-into-the-red-20170825-gy3zzj.html