Tasmanian-based Australian baby food company Bellamy’s Organic (Bellamy’s) has seen its share price soar on its debut listing on the Australian Stock Exchange on 5 August 2014. The market capitalisation at that price is $129.2 million.

Bellamy’s listed with an initial share price of $1, but shares are currently trading at $1.36, which values the Company at $129.2 million. Trading range for Bellamy’s shares has been $1.21 to $1.41.

The Company has attracted the attention of Tasmanian self-made millionaire Bruce Neill, who has secured an 8.62 per cent share in Bellamy’s.

Australian Food News reported in July 2014 that the initial share offer price of $1 per share was expected to raise up to about $35 million to fund the expansion of Bellamy’s export business. Both new and existing shares are to be sold under the offer.

The Company supplies its certified organic product range, which includes infant and toddler formula, as well as baby foods and snacks, to Woolworths, Coles, independent supermarkets and pharmacy chains.

It also exports its food to China, Hong Kong, Taiwan, Singapore, Malaysia, Vietnam and New Zealand. The Company said strong demand for its baby foods in Asia had led to the opening of offices in Singapore, Shanghai and Hong Kong.

Bellamy’s said it had established a comprehensive strategy to deliver continued growth through:

• expansion into Asian markets by growing distribution networks into new Asian markets and penetrating deeper into existing Asian markets;
• expansion into other new markets by identifying key markets for growth outside of Asia;
• category development outside the Baby category by leveraging Bellamy’s brand awareness into range extensions outside the Baby category;
• new products within the Baby category by continuing to grow the baby proposition and through innovation and product development; and
• full distribution across Australia and expanding the product range and type of distribution outlets within Australia.

Bellamy’s said the Company’s revenue was expected to come to $48.2 million in the 2014 financial year, after the third consecutive year of 80 per cent growth. The target forecast for 2014-15 is $83 million.

Bellamy’s Organic started in Launceston, Tasmania in 2004 as a family-operated company. It was the first to offer an organic baby formula range in Australia. Tasmanian Pure Foods Ltd purchased Bellamy’s Organic in 2007.

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