CONCERNS over the impact the coronavirus will have on Blackmores' business over the coming months have prompted the company to downgrade its full-year profit forecast.
In a statement to the Australian Securities Exchange (ASX) the healthcare supplement brand reported first-half revenues of $303 million, delivering an underlying net-profit after tax (NPAT) of $18 million, noting the full-year NPAT was likely to range between $17 million and $21 million when the impacts of the coronavirus are taken into account.
The company noted that while the outbreak of the novel virus had increased demand for its immunity products in Australia and Asia, the impact on sales has been countered by supply chain disruptions across the region.
"Some e-commerce partners have cancelled or modified Feb promotions with a slowdown of China inbound and internal freight, which has made it difficult to serve the local market demand with much-needed product," Blackmores said.
The company added that new product regulations imposed by the Therapeutic Goods Administration (TGA) regarding product claims and labelling requirements, which come into effect in Sep, and have prompted a redesign of the labels for all markets, with one-off costs associated with the change expected to impact Blackmores' full-year results.
Blackmores CEO, Alastair Symington, said the company aimed to focus on rejuvenating its Australian business in the fourth quarter of the current financial year.
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