Blackmores sees profits soar
August 19, 2010
AUSTRALIAN natural health
brand, Blackmores has reported a
17% year-on-year increase in its
full-year profits.
Clocking a net profit of $24.3m,
Blackmores’ earnings per share
were also up 15% to 146.8 cents.
Pre-tax earnings saw the
company deliver a $40.9m
earnings rate, an impressive
increase of 25%.
“It is particularly pleasing to see
our profitability growing faster than
sales and for EBITDA to increase so
significantly in a year of
considerable investment in our
people, new technology and the
new Campus at Warriewood,” said
ceo Christine Holgate.
Overall the company saw a 7%
sales growth in Australian sales and
25% for the Asian market.
On releasing the results the
Board also declared a final
dividend of 70 cents per share
which effectively delivers a 17%
increase in its full-year dividend to
112 cents.
“In recognition of the ongoing
strength of the Blackmores balance
sheet, Directors have decided to
suspend the Dividend
Reinvestment Plan until further
notice,” a statement from the
company said.
The full-year results also saw
Blackmores’ net assets up 23% and
its operating cash flow up by 26%.
Throughout the period the
company implemented several new
initiatives to help it “get closer to
our customers”, including
increasing points of distribution,
improving service and delivering
over 80 new products and
formulations to the market.
“These have seen us outperform
in all of our core markets to deliver
our eighth year of record sales and
profits,” the company statement said.
The period also saw Blackmores
invest in bringing on additional staff
members, as well as a brand new
interactive website.
The completion of the Warriewood
campus also enabled the company
to increase product volumes, as
well as to enjoy efficiency gains
which have, according to
Blackmores, already begun to offset
the cost of the campus’
construction and implementation.
Moving forward Blackmores has
said that it is “interested in the
integration of the Eastern and
Western approaches to health
management”.
This interest saw the company
partner with Eu Yan Sang (a
leading Asian healthcare company)
which will see Blackmores become
the first Western brand of dietary
supplements in their outlets in Asia.
Speaking on its acquisition of
Pure Animal Wellbeing (PAW) in
July, Blackmores said that PAW
provided it “with a well positioned
entry into the fast growing segment
of natural health products for pets.
“While the challenges of the
broader retail and regulatory
environment will remain, we are
confident we have a strong team
and a solid strategy for growth for
the future,” the Blackmores
statement said.
“Blackmores brand health is
strong and consumers continue to
look to our products for health
solutions they can trust,” the
company added.
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