Bellamy’s Australia Limited (ASX: BAL)
Based in Australia, Bellamy’s Australia Limited (ASX: BAL) is involved in the operations of providing food and formula products for babies, toddlers, and young children. The company achieved strong growth, profitability and cashflow in the FY18 year. In FY 2018, the company was able to establish strong foundation for business, in terms of revenue management, cost of goods discipline, overhead control, brand investment and organizational capability. In FY 2018, the company’s total sales increased by 37 percent and EBITDA increased by 65 percent on a normalized basis. At the end of FY 2018, the company was having cash of $88 million and the company was having no debt in its balance sheet.
For FY 2019, the company took an initiative of including new functional ingredients, locally sourced milk, and new food and formula lines. It is expected that the FY 2019 performance will be impacted by the slower category growth and a more competitive trading environment. Also, there is going to be a short-term trade-off to sales and profit in the first half of FY 2019 as the company has run-down trade inventory to maximize the success of formula relaunch in second half of FY 2019. The Company is anticipating that the FY 19 trading environment will be more challenging as the company is witnessing slow China cross border growth, and increased competition in terms of both availability and trading pricing for both local and global competitors.
In the last six months, the share price of the company decreased by 60.7 percent as on 26 October 2018, and traded at a PE level of 18.65x. BAL’s shares were trading at $7.2 with a market capitalization of $828.72 million as on 29 October 2018, 1:30 PM AEST (down 1.5%).
Bingo Industries Ltd (ASX: BIN)
Bingo Industries Ltd (ASX: BIN) is regarded as the “recycling as well as waste management” company. It is in the business of providing environmental as well as waste management solutions. The company is listed on Australian Securities Exchange or ASX under the symbol BIN. In FY 2018, the company managed to garner revenues of $300.2 million reflecting a rise on the YoY basis. In 2017, the company garnered $208.7 million. However, its total revenues including the other income stood at $303.7 million in FY 2018 while in FY 2017 it was $210.1 million. For FY 2018, the other income was generated primarily from renting the equipment from streams related to the company and others.
The company’s strategies mainly include deployments in the technology, diversion of the waste, and working towards innovation so that the sustainability outcomes can be improved as well as it remains on track for plans to maximize the returns. There are certain priorities which the company plans to work moving forward. It plans to work towards safety, improving the customers’ experience as well as it would be aiming to retain and develop the talent i.e. making investments in the people. However, it would be working towards innovation and growth as well as resource recovery.
On October 29, 2018 (1:30 PM AEST), stock price of Bingo Industries Limited (ASX: BIN) was seen at A$2.480 per share which implies slight recovery post the stock decline of 3.137% noted on October 26, 2018. It has a market capitalization of $1.44 billion. Over the past 6 months, it has delivered a return of -5%.
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