Blackmores Limited (ASX: BKL) today announced profit for the first nine months of $52 million, up 19.3 per cent compared to the prior corresponding period, on net sales of $434 million, up 8.5 per cent on the prior corresponding period.
“We made solid market share gains in Australia over the last quarter and remain the clear number one brand in Australia in both total market and domestic sales,” said Richard Henfrey, Blackmores Chief Executive Officer. “This was a solid result notwithstanding the impact of supply challenges over the period.”
“Blackmores has a strong commitment to Australian and New Zealand manufacturing, and recent structural changes in the sector have affected the supply continuity of many of our smaller lines and brands as well as export sales in the second and third quarters,” said Richard Henfrey. “We finished the quarter in a much better supply position and we expect this to continue to improve in the coming months.”
Strong advertising and promotional activity in the quarter supported sales in Australia which remain broadly in line with last year for the nine months to 31 March.
“Blackmores sales in China at $102 million for the nine months were up 21% compared to the prior corresponding period. China sales in the third quarter were below our expectations mainly as a result of the impact of supply challenges and some disruption due to customer trading term re-negotiations, with a stronger fourth quarter expected,” said Richard Henfrey. Blackmores’ established businesses in other markets in Asia experienced growth of 20% in constant currency terms compared to the prior corresponding period. Indonesia, Korea, Taiwan and Hong Kong continue to deliver particularly strong growth.
BioCeuticals Group net sales at $79 million were up 11% compared to the prior corresponding period and will further benefit from the recent extended distribution of IsoWhey products into new sales channels.
“The cost benefits resulting from last year’s full supplier review are continuing to deliver and will positively impact our margins this year,” said Richard Henfrey. “The acquisition of Catalent Australia will support further efficiencies in the future.”
During the quarter, BioCeuticals partnered with the Blackmore Foundation, the personal philanthropic trust of Marcus and Caroline Blackmore and the Jacka Foundation, to provide $1.5 million in funding for the Australian Research Centre in Complementary and Integrative Medicine at the University of Technology Sydney (UTS:ARCCIM), a scientific research program that aims to improve understanding into the ways health consumers and practitioners use naturopathy and other complementary medicines.
The announcement was made by BioCeuticals’ newly appointed Managing Director, Eyal Wolstin. Eyal brings extensive experience in the complementary health industry. As sales director, he has successfully led the growth of BioCeuticals for four years and has been the acting Managing Director since November 2017.
· Net sales for the nine months to 31 March of $434 million, up 8.5% compared to prior corresponding period
· Net profit after tax of $52 million, up 19.3% compared to prior corresponding period
· Acquisition of 100% of the world-class Catalent Australia tablet and soft-gel capsule manufacturing facility in Braeside, Victoria for $43.2 million, delivering increased agility to respond to changing market conditions
· The acquisition will support the Group’s future growth and product innovation with strong research and development capabilities and provide greater control over production
· Jackie McArthur appointed to the Board as Non-Executive Director, with extensive operational expertise across the Asia Pacific region