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Bellamy's halted for new trading update

AAP logoAAP 11/12/2016

Shares in Bellamy's have gone into a trading halt ahead of another trading update less than two weeks after a surprise announcement that wiped more than $500 million off the infant formula maker's market value.

Bellamy's says it has requested the halt "pending the release of an updated announcement of the impact of trading conditions on the company's expected financial results".

It is expected to recommence trading no later then Wednesday following the announcement.

The Tasmanian baby food company revealed on December 2 that regulatory changes in China had hit its sales, with the potential for full year revenue to come in below 2015/16's $244.6 million if conditions do not improve.

The trading update unnerved investors and triggered a sharp sell-off that wiped more than $500 million from Bellamy's market value.

Bellamy's said regulatory changes, which include restrictions on the number of baby products companies are allowed to sell in China, had triggered discounting by rivals that has hit its sales.

The company said then that revenue for the first half of the 2016/17 year is expected to be around $120 million and revenue in the second half is also expected to be similar if current conditions continue.

On December 8, Bellamy's said it revealed information about poor China sales and a lower outlook as soon as possible after the ASX raised questions over the timing of the announcement.

The ASX sent a query on the timing citing listing rules that require companies to immediately report information that could have a material impact.

Bellamy's said the board had a routine meeting on November 22 for a monthly business update and the impact of November sales to date was considered.

It wasn't until a board meeting held on December 2 before the market opened that the company finalised the updated forecasts and approved it to be released to the ASX that day.

Bellamy's shares last traded at $6.68.

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