BLACKMORES has announced the wind-up of its infant formula partnership with Bega Cheese (PD 30 Oct 2015), saying the companies had mutually agreed to suspend the pact after considering the performance of the business.
The announcement was detailed in a trading update from Blackmores yesterday, which also revealed a 28% uplift in profit for the three months to 30 Sep.
Newly appointed ceo Richard Henfrey said it was a "promising start to the new financial year," with the previous corresponding period seeing significant volatility and a challenging performance.
Henfrey said Blackmores had implemented a global approach to pricing, supporting an improvement in underlying margins.
"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".
The Blackmores ceo said Australian retail remained challenging, with continued subdued consumer sentiment, although sales in Australia continued to be boosted by strong demand from Chinese consumers.
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