Shares skyrocket at BWX after company announces strong HY2016 and plans move into China

Shares skyrocket at BWX after company announces strong HY2016 and plans move into China

BWX saw its shares soar AU$4.50 on Wednesday as it announced a 53 percent rise in EBIDTA for the first half of the fiscal year. Net profit was up 61 percent to AU$6.3 million, according to a report published by The Sydney Morning Herald.

The contract manufacturer, who also produces its own brands, is hoping to enter the Chinese market, after a strong performance on the ‘grey market’, where Chinese tourists buy products on local markets and import them to Chine via non-official channels.

However, BWX, whose core brand Sukin skin care is Vegan friendly, may well encounter a stumbling block upon entry to China, given that the Chinese authorities require all cosmetics to be tested on animals. CEO John Humble claimed that the company would not compromise on its ‘no animal testing’ stance, noting that there was some ‘subjectivity’ around China’s regulatory controls.

 

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