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BLACKMORES (ASX:BKL) has reported less than impressive third quarter results, with net profit after tax down 47 per cent with weaker than expected sales across most of its markets.
The company struggled in Australia and New Zealand, but was really hurt by a lack of interest from customers in China.
Blackmores Chief Executive Officer Christine Holgate says the company is "refurbishing the house" this year after the less than promising third quarter results.
"We are focused on simplifying and steamlining our business, conservatively managing expenses and investing in our brand, facilities and new markets to diversify our revenues and underpin growth," says Holgate.
Though the company struggled with China over the financial year so far, the company remains committed to tapping in to the wealthy Chinese middle class market.
"China remains an important part of our business and we were extremely honoured to meet with China's Premier Li Keqiang in March to share our support of his Healthy China 2030 vision," says Holgate.
"We recognise that regulation in China evolves, as it does in any market, and we are focused on continuing to build a business that is able to adapt to market changes to ensure consumers continue to have access to our products."
During the third quarter the company made new ground in south east Asia after signing a distribution agreement with the Mesa Group, Vietnam's leading distribution company.
Blackmores and Mesa will launch a range of 13 Blackmores products in the coming months.
Despite the poor performance, the company is optimistic about the future, expecting the full year profit to represent good growth on the 2015 financial year but doubt they can reach the exceptional performance of 2016 which saw the company make a net profit after tax of $100 million.
Business News Australia
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