Bellamy's Australia Limited provided earnings guidance for the fiscal first half ended December 31, 2016, second half and full year 2017. The company's 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. Since the 2 December 2016 trading update, the company's sales figures to 31 December 2016 and revenue for the fiscal first half 2017 are expected to be in the range of $115 million to $120 million. The company's expected gross profit margin for fiscal first half of 2017 is the range of 39% to 40%. The company's expected EBIT for fiscal year 2017 is $22 million to $26 million. The company's expected gross profit margin and EBIT reflects the impact of: Lower than expected sales volumes and changes in the Company's customer mix; Manufacturing shortfall payments; Increased cost of organic ingredients in order to secure supply; and previously announced additional investment in marketing, people and promotions. The company's EBIT has also been impacted by a number of provisions relating to inventory write downs, foreign exchange losses and other one off items associated with the supply chain restructure. Removing the impact of those one-off charges, EBIT margin for fiscal first half of 2017 would have been between 14% and 16%. The company's profit after tax in first half 2017 is expected to be between 6% and 9% of revenue, reflecting the impact of the factors outlined above plus interest expense on borrowings. Gross profit margin expected to reduce to a range of 32% to 34% in second half of 2017. The company's profit after tax expected to be between 4% to 6% in second half of 2017, reflecting the impact of the factors outlined above plus interest expense on borrowings. Fiscal year 2017 revenue is expected to be in the range of $220 million to $240 million. This guidance reflects the impacts of higher than anticipated stock levels held by Bellamy's trade customers. Overall for fiscal year 2017, gross profit margin is expected to be in the range of 35% to 38%. The company's expected EBIT for fiscal year 2017 is $12 million to $14 million, representing an EBIT margin of 10% to 12%.