Blackmores profit soars 83%
August 26, 2015
Blackmor es yesterday
celebrated its 30th year in
operation by reporting a record for
sales and profits for the 12 months
to 30 Jun, with surging demand for
the company’s products across all
of its operating regions.
Total sales were $471.6 million
for the year, up 36%, with ceo
Christine Holgate saying demand
had accelerated in the second half
of the year when sales lifted 50%.
Double digit underlying growth
was achieved across all sales
channels in Australia, including
community pharmacy.
“The higher sales were the
culmination of a number of
programs we had put in place
over recent years, including
reinvigorating our Australian
business, establishing an
enterprise in China, investing in
our quality and research programs
and identifying a strong brand
proposition that is supported by a
higher level of marketing across the
Group,” she said.
Holgate said the strong demand
had brought challenges, with the
company’s “principal concern”
having been addressing the needs
of loyal Australian consumers.
“We have increased our supply
and capacity significantly, whilst
remaining focused on maintaining
our unrivalled quality and
commitment to efficacy and
sustainability,” she said.
Supply constraints were
experienced in key raw materials,
some of which are only grown and
harvested once a year.
A particular phenomenon has
been a growing number of “Chinese
shoppers and entrepreneurs
purchasing our products through
Australian retailers,” Holgate said
- in accordance with anecdotal
evidence from several pharmacists
who have told PD about strong
demand from Chinese customers
who in some case are believed
to be on-selling the products
purchased from Australian retail
shelves to customers in China.
Holgate said Blackmores believes
the contribution from these
customers alongside revenues from
Asia indicates that the value of
the region to group sales is worth
approximately $150 million.
“This demonstrates the growing
demand for our brand outside
Australia and highlights the
importance of our Asia growth
strategy,” she said.
Bioceuticals, which Blackmores
acquired in 2012, performed ahead
of target with $55.5 million in
sales and pre-tax earnings of $8.7
million.
The Group’s overall net profit
after tax was $46.6 million, up 83%
on the previous year, with most of
the company’s 900 staff to receive a
bonus equivalent to six week’s pay
as part of a profit-sharing scheme.
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