Asian sales add vitality for supplier
SHARES in vitamin maker Blackmores jumped more than 7 per cent after it announced a record annual profit.
Blackmores’ net profit surged 83 per cent to $46.6 million on the back of frenzied development of its Asian division, where sales increased 26 per cent. The result pleased investors, with the company’s shares surging by $6.04, or 7.2 per cent, to $90.44.
Sales to China, where the brand is endorsed by retired tennis champion Li Na, skyrocketed to $75 million in the year to June 30 from just $2 million the previous year.
The opening of free trade zones in China last year allowed Blackmores to sell its products to Chinese consumers, although only via an ecommerce platform.
“It really opens up the opportunity for the Chinese consumer to buy a whole range of Blackmores products and for us to offer them,” chief executive Christine Holgate said.
Sales in its Australian-based operations were up 43 per cent, a result Ms Holgate attributed to increased demand for vitamins from Chinese tourists in Australia, the nation’s ageing population and more investment in branding and research.
It will pay a fully franked final dividend of $1.35 a share.