AUSTRALIAN Securities Exchange (ASX) listed health supplement brand, Blackmores, has reported a 55% dip in earnings before interest and tax, from its Australian and New Zealand (ANZ) business in the six months to 31 Dec, compared to the prior corresponding period.
Announcing its first-half financial results, Blackmores Chairman, Brent Wallace, noted revenue was down 5% to $303 million, with revenue from ANZ business falling by 20% to $115 million.
"Contributing to this decline was regulatory change in China, which impacted revenue in Australia and additional material and packaging costs," Wallace said.
The results were in line with a profit downgrade issued last week (PD 12 Feb), which flagged concerns over the potential impact the coronvirus could have on the business over the coming months.
Despite concerns over the impact increased manufacturing costs combined with other factors including coronavirus will have on the second-half results, Wallace said the company's Board and new management team were "very confident and optimistic about the long-term future of Blackmores".
Wallace also confirmed the company's Directors had resolved not to pay an interim dividend in respect to the first-half.
Blackmores CEO, Alastair Symington, outlined four strategic priorities for the business, including leveraging manufacturing and partnerships to drive new growth in Indonesia and India, shifting away from its "Australia leads, Asia follows" approach, to focus on the "Modern Career Women in China" as a key consumer group, while building a "world-class organisation", and rejuvenating the brand in Australia.
"With our renewed strategy we are making clearer choices that set the business on a stronger footing for the long-term that will free the group to focus on what matters," he said.
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