BLACKMORES yesterday announced its financial results for the six months to 31 Dec, with overall sales across the group declining 6% to $322 million.
The sales dip impacted the company's profitability, with net profit after tax for the period of $28 million, down 42%.
Sales in Australia were particularly impacted, diving 31% to $158 million compared to the previous corresponding period.
However the company said there was some recovery in the last three months of the year, with domestic Australian sales returning to modest year-on-year growth.
"Chinese-influenced sales through Australian retailers remain down, as buying patterns evolve," the company said, adding that it continued to build a "successful China business to better serve these customers".
In particular the first quarter of the financial year was impacted by changes to the way Chinese exporters purchased products, as well as high stock levels held by Australian retailers.
"We are encouraged by progress in the second quarter across the group, though the Australian retail environment remains challenging," said ceo Christine Holgate.
China direct sales were strong, amounting to almost $64 million during the period, up 92%.
"The Chinese market is both complex and challenging, though it remains a very important part of our business and we are pleased with our growth," she said.
The board declared a $1.30 per share dividend, down 35%.
Blackmores shares dived more than 10% to $104.53 in the wake of the results announcement.
MEANWHILE the company also confirmed that its executive chairman, Marcus Blackmore, is taking a sabbatical for up to six months from Mar, during which time his deputy Stephen Chapman will assume the chairman's role.
"Marcus will remain a director and will maintain close contact with the Board and Executive team as required," the company said.
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