BLACKMORES SKYROCKETS TO RECORD LEVEL WITH CHINA BOOM

Written on the 25 February 2016 by Sydney Business News

BLACKMORES SKYROCKETS TO RECORD LEVEL WITH CHINA BOOM CHINESE money has boosted Blackmores' (ASX: BXL) profit to a record first half level, up 160 per cent.

The Sydney vitamins and supplements maker posted a $48 million net profit after tax for the six months to December 30.

This exceeds the total profit last year.

Blackmores CEO Christine Holgate (pictured) says sales were up 65 per cent over the period to $341 million and were fuelled by spend in China. Australia accounted for $238 million of this, and still this figure was said to be bolstered by Chinese tourists and entrepreneurs.

"China, in particular, continues to grow in important with sales to Chinese consumers, both direct and through Australian retailers, estimated to represent 40 per cent of group revenues," says Holgate.

"Sales to retailers in Australia have been bolstered by Chinese tourists and entrepreneurs, as well as from continued innovation and marketing activity."

Holgate says innovation and digital marketing around Blackmores' new Superfood range and the opening of an experiential flagship store also drove sales.

The profitable period was underpinned by total group expenses of $273 million, an increase of 53 per cent on the prior corresponding period, reflecting an increase of raw materials and freight.

Holgate says Blackmores is geared up for the future, having invested in a third production and distribution shift over the period.

In an announcement to the ASX today, Holgate referred to Indonesia and infant nutrition being hot markets for the company going forward.

Both are being executed through joint ventures, with Kalbe Farma facilitating entry for the company into the Indonesian market, and Blackmores and Bega Cheese (ASX: BGA) creating a joint venture into infant formula during the reporting period.

The infant formula starting selling in January, and while sales weren't factored into this reporting period, Holgate says the company's 'have made exciting progress'.

Holgate says the Blackmores board is confident it can achieve strong profit growth off the back of this result for the full year.

The company will pay a full franked interim dividend of 200c per share, a 194 per cent increase for shareholders on the prior corresponding period.

Author: Sydney Business News Connect via: Twitter

Latest News

FORMER MFS EXECUTIVES HIT WITH DISQUALIFICATIONS AND MASSIVE FINES FOR MISAPPROPRIATING FUNDS

FIVE key players involved in an investment company that collapsed in 2008 owing $2.5 billion have been ordered to ...

SURFSTITCH BATTLING FOR SURVIVAL

QUEENSLAND based online retailer SurfStitch Group has gone into a voluntary trading halt for three months after it wa...

STARTUP SUCCESS BOILS DOWN TO PERSONALITY, SAYS EXPERT

THOSE who own startups will know that there are many essential qualities of a good entrepreneur; their tenacity, fina...

THE AMBITIOUS PLAN TO TURN A COLLAPSED FRANCHISE INTO AN EXPANDING BUSINESS

AUSTRALIA'S newest master franchise is set to launch in October as a commercial cleaning operation, resurrecte...

Related News

STARTUP SUCCESS BOILS DOWN TO PERSONALITY, SAYS EXPERT

THOSE who own startups will know that there are many essential qualities of a good entrepreneur; their tenacity, fina...

SLATER AND GORDON TAKES SPOTLESS TO COURT

SPOTLESS Group (ASX: SPO) has been hit by a class action launched by Slater and Gordon (ASX: SGH) in the Federal C...

TOPSHOP GOES INTO ADMINISTRATION AMID VOLATILE RETAIL MARKET

TOPSHOP has become the latest in a string of retailers blasted by the volatile retail market, as the iconic fashio...

SIGMA'S SHARE PRICE TAKES A BATTERING AS IT LAUNCHES LEGAL ACTION OVER SUPPLY DEAL

SIGMA Healthcare (ASX: SIG) has taken the MyChemist and Chemist Warehouse chains to court to demand they continue to ...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter