Blackmores profit up 20%

BLACKMORES has reported overall group revenue was boosted 9% to $287m for the six months to 31 Dec primarily from “consistent sales growth with improved profitability” and resulting in net profit after tax for shareholders at $34m, up 20% on the previous corresponding period (PD Breaking News yesterday).

Revenue in Australia and New Zealand was $121m, slightly down from the previous year as the broader consumer market remained subdued and China influenced sales continued to move to Blackmores’ direct China channels, directors said. The overall impact of this was muted by the strength of the group’s business diversity.

Even so, H1 earnings from the ANZ business was improved 19% to $26m compared with the previous corresponding period due to changes in the cost structure of this business and phasing of expenses.

Highlights were the performances of Blackmores new probiotics and children’s gummy vitamin categories.

China sales grew 27% delivering 4% profit growth.

The new state-of-the-art distribution facility at Bungarribee in Western Sydney was now fully operational.

Directors concluded, “The first half performance gives Blackmores a strong foundation for the full year with the delivery of an improved sales and profit result whilst investing in growth initiatives.”

China and Indonesia businesses were very encouraging chairman Stephen Chapman said, tempering his enthusiasm with reference to supply issues and the soft Australian market both impacting on H2 results - these comments pushing the share price down 14.7% yesterday.

Chapman added, “We remain confident we will continue to deliver good profit growth for the full year” - see asx.com.au.