(Adds details, background on China regulation)
Feb 27 (Reuters) - Bellamy's Australia Ltd (BAL) on Wednesday said its net profit plunged 63.7 percent in the first half, hurt by regulatory delays in China - its top growth market - though it plans to step up marketing efforts.
Statutory net profit came in at A$8.1 million ($5.82 million) in the six months ended Dec. 31, down from A$22.4 million a year ago.
Bellamy's, which regards China as its top growth market, has been unable to stock its organic milk powders and formulas in shops there because it is still awaiting regulatory approval. The company was expecting the approval within calendar year 2018.
The company now plans to double marketing expenditures as well as its team in China in the second half, Bellamy's said in a statement.
Due to a delay in securing a permit to sell directly in Chinese shops, the company now expects 18 percent to 22 percent growth in its full-year normalised earnings before interest, tax, depreciation and amortization as it accounts for lower revenue during its investment push.
Revenue for the same period would be between A$275 million and A$300 million, Bellamy's added.
Meanwhile, revenue for the first-half was at A$129.6 million compared to A$174.9 million in the previous year.
The Tasmania-based company in August last year, had warned that a delay in securing a permit in China would slow revenue growth for as long as two years.
Sales in Australia, often helped by shoppers who post the product to China, was also impacted by increased competition in the local market.
New Zealand's a2 Milk Company (ATM) last week reported its half-year profit soared as its investment in China paid off despite an economic slowdown there. It said it would reinvest resources into marketing activities in the second half.
($1 = 1.3910 Australian dollars)
