Shares of Blackmores (ASX: BKL) are up despite announcing that its leadership team is stepping down.
Blackmores describes itself as Australia’s leading natural health company. Maurice Blackmore founded the company in the 1930s. Blackmores has a number of different brands, not just the well-recognised Blackmores brand. It operates BioCeuticals, the Blackmores Institute, Fusion Health & Oriental Botanicals, Impromy, IsoWhey and Pure Animal Wellbeing (PAW).
Blackmores’ AGM News
Blackmores is holding its annual general meeting (AGM) today.
As part of the proceedings, Brent Wallace (Chairman of Blackmores) announced that he would be stepping down from the position and from the Board until two non-executive directors have been found.
It was also announced that Marcus Blackmore has advised the Board he will be stepping down from the role of Executive Director, but he will continue as a Non-Executive Director.
But there were also some promising appointments.
Kitty Liu has been appointed as the Managing Director for China. She has been working for 25 years in Asia for large consumer companies like General Mills, Reckitt Benckiser, Yum! and Unilever.
Ayumi Uyeda has been appointed Managing Director for Australia and New Zealand, she is currently the Global Head and Vice President of Aspirin and Aleve in the ‘Pain & Cardio’ categories at Bayer.
Dean Garvey has been promoted to become Managing Director for Blackmores International. He is currently Deputy Managing Director of Asia.
Due to these changes, Peter Osborne will be leaving the business from his position as Managing Director of Asia.
Is The Blackmores Share Price A Buy?
Blackmores has been adrift since its impressive rise in 2015. Perhaps these changes will put it back on a course for profitable growth.
The vitamin company warned that first half profit of FY20 will be lower than December 2018’s because of disruptions caused by channel shift and China regulatory changes that started in January 2019. Ingredients and raw material costs have also gone up. But, a price increase in October should boost the second half.
It’s not a bad business, but I don’t think it’s the most promising opportunity on the ASX either. I’d rather put my money towards the growth shares in the free report below over Blackmores.
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At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.