SYDNEY, Jan 11 (Reuters) - Infant formula maker Bellamy’s Australia Ltd revised down its revenue forecast on Wednesday, projected a decline in profit margin in 2017, and said Chief Executive Laura McBain will leave the business.
Investors had been bracing for a hit to earnings since the company on Dec. 2 said new import rules in China would prompt exporters to dump stock, leading to a glut and hurting its shipments.
Bellamy’s share price plunged more than 40 percent on that news and the stock has been in a trading halt since Dec. 12, when the company promised an “updated announcement” on the financial effects of the glut was forthcoming.
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.
McBain will be temporarily replaced as CEO by Chief Operating Officer Andrew Cohen while the board searches for a permanent replacement, Bellamy’s said.
Trading of Bellamy shares resumed on Wednesday, with the stock opening down 40 percent. (Reporting by Tom Westbrook)