Blackmores sales strong
February 28, 2013
BLACKMORES has reported an
impressive 29% year-on-year
increase in its group sales, to $164
million in the first half of 2013.
Speaking about the results,
company ceo Christine Holgate said
“we’ve enjoyed strong sales growth
from across our business.”
“Even excluding BioCeuticals, our
new acquisition, sales grew by
12%,” she added.
In addition, the results also
showed that in the first half of the
financial year Blackmores Australia
delivered $108 million in invoiced
sales, up 10% in a highly
competitive market.
“Blackmores is not immune to the
pressure of retailing in such a
challenging and changing market
and significant investment was
made in both marketing and trade
support in the period,” the
company said in a statement.
Meanwhile, the company’s core
Asian markets delivered sales
growth including a 22% lift in sales
from Thailand, and 26% sales
growth in Malaysia.
Blackmores also noted that its
Korean operations experienced
some delays in new product
approvals “but confidence remains
in the health of this business”.
Moreover, the company
confirmed that it has progressed
with its entry into China, and that it
now has trading agreements in
place with major pharmacy groups
and 70 staff trained and
operational.
“The first half results capture
expenses associated with the
launch of Blackmores in China
however revenues from China have
not yet been fully recognised in the
Groups reported sales as a result of
the nature of the trading
agreements,” the company said.
Meanwhile, Blackmores has said
that it is pleased with the progress
of BioCeuticals, reporting that in
the first six months since the
acquisition, sales have grown by 8%
to $21.5 million.
Blackmores also said that it has
developed a new growth strategy
for the BioCeuticals.
“After considering the additional
debt required to fund the
acquisition, the business is already
positively impacting our earnings,”
Holgate said.
Net debt at period end was
$81.9m (an increase of $48.9m),
which according to Blackmores,
reflects the funding required for
the acquisition of BioCeuticals in
July 2012.
Discussing the newly created
Blackmores Institute, Holgate said
that the Institute is currently
overseeing investment in 25 clinical
trials in partnership with leading
hospitals and universities.
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