Small cap infant formula exporters milk Bellamy’s profit upgrade
Food & Agriculture
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Small cap infant formula exporters gained on Tuesday after big brother Bellamy’s upgraded its revenue and profit guidance.
The $1.5 billion Bellamy’s upgraded expected revenue growth to between 30 and 35 per cent, up from 15 to 20 per cent.
The news pushed up shares (ASX:BAL) by 25 per cent to near 52-week highs.
Small cap infant formula exporters bathed in the after-glow.
Goat milk favourite Bubs (ASX:BUB) gained 5.5 per cent and Wattle Health (ASX:WHA) jumped 4.4 per cent.
Bioxyne’s ‘milk formula for the whole family’ also enjoyed a boost — its shares (ASX:BXN) trading up 3 per cent. Bioxyne also launch three new supplement products today.
Major player A2 Milk also got a look-in. It’s shares (ASX:A2M) climbed 5.7 per cent in afternoon trade.
Demand continues to grow in China and other Asian countries for Australia’s clean-and-green baby food products amid the recall of 12 million formula tins in a salmonella scare by French dairy company Lactalis last month.
The sector continues to expand. China-focused JAT Energy (ASX:JAT) already had exposure through its Cobbity Country subsidiary and bought into Golden Koala milk formula late last year.
Its shares have been suspended since mid-December and last closed at 70c.
Daigou retailer AuMake (ASX:AU8) told shareholder late last year it was in active discussions for its own branded products in the lucrative market.