Blackmores gains on global markets, efficiency improvements

Vitamin manufacturer Blackmores has reported rising sales and earnings as international sales and efficiency improvements flowed through to the bottom line.

The Sydney company today reported underlying earnings before interest and tax up 51 per cent to $47.6 million for the year to June 30 on a 3.2 per cent rise in sales in constant currency terms to $575.9 million.

International revenues were up 27.3 per cent at constant FX with the China segment apparently unaffected by its trade dispute with Australia up 27.8 per cent to $14.3 million.

CEO Alastair Symington said: “Blackmores has made strong progress toward delivery against our strategic priorities over the past 12 months by aligning our resources to capitalise on growth markets, channels and segments.

“The operating environment in Australia remains challenged due to lockdowns and border closures.”

The company is investing in e-commerce and digital technologies and during the year:

• The business improvement program achieved annualised savings of $28 million on the way to an annual target of $55 million
• And efficiency and price/mix initiatives delivered margin benefits on the way to a goal of EBIT margin to the mid-teens.

During the year Blackmores Australia and New Zealand revenue was down 14 per cent to $280.6 million, however underlying EBIT was up 1.7 per cent to $40.3 million.

Sales here were subdued as Covid-19 travel restrictions cut levels of international travel and student numbers.
Picture: Blackmores

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