* 2017 revenue view A$220-240 mln vs A$245 mln in 2016
* Bellamy's previously forecast revenue growth in 2017
* Laura McBain to step down as CEO with immediate effect
(Recasts on share price, adds company quote and context)
SYDNEY, Jan 11 Shares in Bellamy's Australia Ltd
plunged more than 40 percent on Wednesday after the
infant formula maker cut its 2017 revenue forecast and said
Laura McBain would step down as chief executive officer with
Bellamy's also said its profit margin would narrow in 2017
on lower-than-expected sales, disclosed an inventory writedown,
and detailed a renegotiated milk supply deal with New Zealand's
Fonterra Co-Operative Group Ltd.
"Revenue and profitability have been impacted by lower than
expected demand for Bellamy's infant milk formula, which has
also led to increased inventory levels, excess ingredients and
shortfall payments to suppliers," Bellamy's said in a statement.
In August, Bellamy's projected revenue growth for 2017. It
now expects revenue of A$220 million ($162 million) to A$240
million, rather than the flat A$240 million it forecast in
December. That would compare with 2016 revenue of A$244.6
Bellamy's also said it expects earnings before interest and
tax to halve, from A$54.3 million in 2016 to a projected A$22
million to A$26 million in 2017.
Investors had been bracing for a hit to earnings since
Bellamy's on Dec. 2 said new import rules in China would prompt
exporters to dump stock, leading to a glut and hurting its
Its share price plunged more than 40 percent on that news
and, since Dec. 12, the stock had been in a trading halt pending
an "updated announcement" on the financial effects of the glut.
Trading resumed on Wednesday.
Bellamy's said it has temporarily replaced McBain as CEO by
Chief Operating Officer Andrew Cohen while the board searches
for a permanent successor.
($1 = 1.3567 Australian dollars)
(Reporting by Tom Westbrook; Editing by Christopher Cushing)