Blackmores Limited (ASX: BKL) has reported its financial result for the half year to 31 December 2017.
Blackmores is Australia’s largest vitamin producer and distributor.
Here are some of the highlights compared to last year:
- Group net sales up 9% to $287 million
- Day to day trading, or EBITDA, grew by 16.7% to $53.5 million (What does EBITDA mean?)
- Profit grew by 18.3% to $33.3 million
- Dividend up 15% to 150 cents per share
Blackmores CEO Mr Richard Henfrey said “We’ve had two quarters of consistent sales growth and improved our profitability reflecting the delivery of our strategic priorities and greater stability in the business”.
Mr Henfrey said that revenue in Australia and New Zealand of $121 million was slightly down on last year as Chinese-influenced sales moved towards direct Chinese sales channels. However, the ANZ EBIT (What does EBIT mean?) grew by 19% to $26 million. New products in the probiotics and children’s gummy vitamins categories meant Blackmores remained the market leader.
Chinese sales grew by 27%, but China profit only grew by 4% after investing in resourcing and operational expenses to expand the Blackmores presence in the country. The company also booked a $2.8 million increase in doubtful debts.
The Bioceuticals Group grew sales by 11% in what management described as a disrupted period due to supply issues.
Outlook
Mr Henfrey said “Supply issues affecting the Group and the soft retail market will impact us in the second half, though we remain confident we will continue to deliver good profit growth for the full year.”
The first half performance gives Blackmores a strong foundation for the full year. We have delivered an improved sales and profit result whilst investing in growth initiatives. – Henfrey
The Blackmores share price fell 14% on Thursday, according to Google Finance.
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