Suspended infant formula producer Bellamy's Australia Ltd (ASX: BAL) has returned to trade after a nearly month in suspension on the ASX. An oversupply of inventory and falling sales have caught the company short and the fallout will be felt by investors for months to come, with shares down 35% to $4.30 at the time of writing:
CEO Laura McBain will leave the company, and profits are now forecast to come in some 60% lower than last year. A renegotiation with supplier FONTERRA UNIT NZX (ASX: FSF) has given the company some extra breathing room, and Bellamy's so far seems to have avoided the massive inventory write-down or capital raising that some may have been expecting.
Further falls could be in store as institutional shareholders head out the door in the coming days.
Either way, there's no question the market will view the company in a different light in the coming year.
