BLACKMORES yesterday released its financial results for the nine months to 31 Mar, with a net profit after tax of $44 million, down 14% on the prior corresponding period.
That was despite revenue increasing 6% to $460 million, with the company hit particularly hard in the most recent quarter which recorded a 43% year-on-year profit slump to $10 million.
"The third quarter has been challenging for the company...however we firmly believe that this result does not reflect the long-term growth potential of the business," said interim CEO Marcus Blackmore.
He said the company was committed to a "major streamlining" of the business to simplify and improve its processes and structure.
The period included the abrupt departure of former CEO Richard Henfrey (PD 27 Feb) after just 18 months in the role.
Blackmore, who took over after Henfrey's resignation, said savings of $60 million over three years were being targeted, while plans would also allow continued investment in key strategic initiatives, capability building and margin improvement delivery.
He noted that Blackmores remains the number one VDS brand in Australia with a 14.9% domestic market share, "supporting wellbeing in more than one in five households".
However revenue in Australia and NZ for the quarter was down a hefty 26% to $54 million.
"We continue to diversify our domestic customer mix and we have seen improvements during the quarter," Blackmore noted.
He said the company's Board was continuing its "extensive search" for a new CEO, "and this process is progressing well".
The outlook for the company is for "modest full-year revenue growth," Blackmore added.
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