LISTED Australian complementary medicines company Blackmores has reported strong revenue growth of 15% to $154 million and net profit of $16.5 million, up 7%, for the three months to 30 Sep.
CEO Richard Henfrey said the result reflected volume growth across the business, with a solid performance in both the Australian and Asian markets.
"During the quarter, gross margins improved and we invested in major strategic initiatives, including a 55% increase in advertising and promotional spend to strengthen our brand," he added.
Australia was a standout, with sales up 19% supported by new product launches, a strong media presence and lower stock levels at the start of the period.
Henfrey noted that Blackmores remained the number one brand in Australia, recording an overall 17.5% market share.
After some shortages last year, Henfrey reassured that the company's supply chain had "returned to business as usual levels", while the practitioner-only BioCeuticals range also did well, with sales growing 13%.
China's in-country sales enjoyed a very strong 30% growth supported by Chinese online platforms such as Kaola's Super Brand Day and Tmall's Enjoyable Day.
Allowing for the trend of indirect export via the Daigou market, the overall growth in sales to Chinese consumers was estimated at 18%.
Other Asian centres experiencing strong growth include Hong Kong (up 59%), Taiwan (up 167% with a Costco partnership), Korea up 76% and Indonesia up 115%.
Strategic priorities outlined by the CEO include preparations for the ownership of the Catalent manufacturing facility in Braeside, Vic by Oct 2019, with the number and volume of Blackmores products made there increasing.
New IT infrastructure will boost operational efficiency, while Blackmores also aims to continue to build its brand in key markets.
The above article was sent to subscribers in Pharmacy Daily's issue from 26 Oct 18
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