I agree inventory is increasing whilst demand is decreasing due...

I agree inventory is increasing whilst demand is decreasing due to competition and destocking. Their competitors have much stronger balance sheets and can ride out any turbulence whereas BAL would be seeing their balance sheet come close to needing capital to ride this storm out imo. Funding arrangements in place might not go ahead.

Bellamy's Annual Report

"Inventory balances have increased significantly as a result of the addition of a second manufacturing partner (Fonterra) and the ingredients required to support this initiative, as well as levels of finished goods to support the current sales rate of the business. Ingredients on hand at 30 June 2016 comprised approximately 50% of overall inventory value at that date.

The investment into our supply chain through the building of raw materials inventory is a measured and deliberate one. While drawing on working capital, this strategy is important in supporting Bellamy’s ability to remain flexible and responsive to the fast growing market demand for our products. Inventory management remains a focus for us. We are mindful of the business’s cash flow requirements as it continues to grow, and have appropriate funding arrangements in place to meet our requirements."