Blackmores profit dips 10%
August 29, 2013
The Blackmores group has
delivered its annual results for
2012/13, showing a 10% drop in
net profit after tax to $25 million.
CEO Christine Holgate cited
reduced margins in the Australian
business, including higher than
expected stock write-offs.
In particular, “challenges in the
Australian retail market intensified,
particularly for pharmacy
customers, our core customer
group, who are going through
significant structural change.”
Holgate said that “the impact
of the increased growth of larger
customers as a proportion of the
vitamins category, while smaller
community pharmacies are
declining, has brought challenges to
the business”.
Margins were also hit by intense
competition from other brands
including deep discounting.
“Although we experienced margin
declines in the year, our Australia
business is still very profitable and
the foundation of our company,”
Holgate added.
Achievements during 2012/13
included the eleventh consecutive
year of record sales, significant
progress in sales in the Asia region
(up 14% to $60m), along with China
and Macau launches.
Holgate also highlighted the
successful Bioceuticals acquisition,
the launch of the Blackmores
Institute and partnering with major
educational establishments.
“Expenses were prudently
managed...this coupled with further
operational efficiencies, improved
treasury management and stronger
profit contributions from other
business, helped mitigate the full
impact of lower Australia margins,”
Holgate said.
Despite the challenges,
Blackmores believes the overall
market will grow as complementary
medicines become more
mainstream, with the company
“well positioned to capitalise on
this opportunity”.
“We continue to expect sales
growth and to improve our profit
performance in the coming year,”
Holgate said.
The above article was sent to subscribers in Pharmacy Daily's issue from 29 Aug 13To see the full newsletter, see the embedded issue below or CLICK HERE to download Pharmacy Daily from 29 Aug 13
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