Vitamin manufacturer Blackmores is achieving positive results from a three-year turnaround enabling it to increase sales and market penetration in fast-growing Asian markets and build a new business in pet supplements.
The Sydney company today reported underlying earnings before interest and tax up 15 per cent to $30.8 million in the half year to December 1, on revenues up three per cent on a constant currency basis to $302.6 million.
The company delivered a cash surplus of $71 million at the end of the half as Australian sales slowed but international sales grew strongly.
Australian revenue was down 10 per cent though the company retained its position as the number one in the vitamin and supplement market.
China sales were up 25 per cent in real terms and international sales up 13 per cent, with Indonesia the fastest-growing market.
CEO Alistair Symington said: “The strengthening of our balance sheet, ability to pay down debt and move to a positive cash position enabled us to step up investments in Asia.
“This has resulted in accelerated growth in our key markets in Asia.”
The Covid-19 pandemic saw a shift in consumer behaviour including a reduction in foot traffic in retail outlets and a fall in sales linked to the cold and flu.
The company’s Pure Animal Wellbeing (PAW by Blackmores) brand achieved a 53 per cent sales increase.
Blackmores new Global Innovation Centre in Shanghai released a new premium line of products designed for the company’s Modern Parent growth platform.
The company reported increasing output at its Braeside, Victoria plant which was acquired from contract manufacturer Catalent.
The factory is on track to deliver 2.7 billion standard-unit doses in FY21, a record result.
“Our supply savings program is accelerating to ensure important improvements such as factory efficiencies, portfolio simplification, reformulation of our products and procurement savings to drive manufacturing efficiency.”
Picture: PAW by Blackmores
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