BLACKMORES has announced a strategic acquisition of 100% of the Catalent Australia tablet and soft-gel capsule manufacturing facility in Braeside, Vic, for $43.2 million (PD breaking news Tue), expanding the company's ability to respond to changing market conditions.
The 30,000 square metre site is licensed to produce medicines by the Therapeutic Goods Administration (TGA) as well as by international regulators.
"Our strategy will be to continue to source a significant proportion of our products from our existing contract manufacturing partners and we will supplement this with our own manufacturing capacity through the Braeside facility," Blackmores chief executive officer Richard Henfrey explained.
In an ASX announcement, Blackmores also reported net sales for the nine months to 31 Mar of $434 million, up 8.5% compared to the prior corresponding period, with net profit after tax at $52 million, up 19.3% on the prior period.
Additionally, the announcement included the appointment to the Board as Non-Executive Director, of Jackie McArthur, 2016 Telstra NSW Businesswoman of the Year, with "extensive operational expertise across the Asia Pacific Region".
Commenting on the reported results, Henfrey said, "We made solid market share gains in Australia over the last quarter and remain the clear number one brand in Australia in both total market and domestic sales."
He added that recent structural changes in the sector had affected supply continuity of many smaller lines as well as export sales in the second and third quarters.
"The Board expects our current growth trajectory will continue and that we will deliver good profit growth for the full year," Henfrey concluded.
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