Blackmores Limited (ASX: BKL) today announced a first quarter profit of $15.4 million, up 28% compared to the prior corresponding period, after achieving net sales of $134 million, 9% up on the prior corresponding period.
“In the first quarter of the year we achieved 28% growth in our direct China sales, launched a new range of kids’ products that – true to our values – are more than 99% sugar-free, we maintained tight cost control while continuing to invest in key growth platforms, and launched a new world-class education platform,” said Blackmores Chief Executive Officer Mr Richard Henfrey.
“This is a promising start to the new financial year. We’re pleased with our progress compared to the challenging first quarter performance last year, and we have returned to delivering profit growth.”
“Blackmores has experienced less volatility across the business in the quarter and we have implemented a global approach to pricing which has supported an improvement in underlying margins,” said Mr Henfrey. “Promotional rebates were high in the last financial year as we supported customers carrying high levels of stock. In this quarter we have returned to a more normalised trading environment.”
“Australian retail remains challenging and this was compounded by strong sales at the end of the fourth quarter, which impacted our July result in Australia,” said Mr Henfrey. “Consumer sentiment in Australia has been subdued though sales in Australia continue to be boosted by strong consumer demand from Chinese consumers.”
New product innovation has been well received with broad and growing distribution of Blackmores’ new probiotic range which uses multiple strains of good bacteria, is condition specific and does not require refrigeration. The launch of sugar-free gummy vitamins for kids resonated well with consumers resulting in a stronger sell-in than expected.
Sales to China are growing as the market approaches the famous Double 11 sales event in November with direct China sales, including export and in-country sales, up 28% compared to the prior corresponding period. Excluding China, sales to other markets across Asia were up 12% compared to the prior corresponding period. Blackmores Malaysia launched Project Kindness, a community-focused marketing campaign, which contributed to 16% sales growth compared to prior period (26% in local currency). Sales in Hong Kong were up 25% (32% in local currency) compared to prior period.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.