Blackmores, revenue, profit up on China, Asia growth

More Blackmores health supplements are being popped in China and South East Asia than in Australia, making up 51 per cent of the vitamin maker’s first-half revenue.

Blackmores CEO Alastair Symington.

China and markets in SE Asia made up just over half of Australian supplements giant Blackmores Group’s revenues in the first half, offsetting a negative trend at home.

The group reported total revenues of $302.6m for the period to the end of December, up four per cent.

Net profit after tax came in at $18.9 million.

The group told investors it recorded double-digit revenue growth in China, Indonesia, Malaysia and Thailand with Vietnam also a strong performer.

Of these, China alone contributed $77.3m in revenues, up 25 per cent on the previous half and the strongest interim result in three years.

Growth in Asia contrasted with a $16m, or 10 per cent, fall in revenues in the Australia and NZ markets to $148m.

Blackmores supplements sales are growing overseas.

Earnings before interest and taxes grew 26 per cent in China and 61 per cent in the international segment, led by Indonesia.

The ANZ segment reported a 22 per cent decline in earnings while Singapore, Hong Kong and Korean markets experienced declines largely related to COVID-19 and travel restrictions.

Shares in Blackmores, valued at $1.6bn, were 10 per cent higher at $81.36 in noon trading.

“There are a couple of things impacting (in ANZ), including border closures which have impacted on students and international traveller numbers, who were a clear and present channel for our products,” chief executive Alastair Symington told The Australian.

Retail sales from international students and visitors were down almost 50 per cent in the six months to December, impacting all brands.

Lower retail foot traffic in pharmacies and the slow uptake due to the reduced cold and flu season due to the lockdowns were some of the other factors affected revenues locally.

“We will continue to see growth in China and Asia in the second half,” Mr Symington said.

“But we are cautious on Australia with the vaccine rollout keeping pharmacies busier than usual.”

The owner of the Blackmores, BioCeuticals and PAW brands is forecasting revenue for the second half to be slightly lower than the first half.

“In the second half, we will maintain our focus on cost management.

“For the remainder of the year, we will respond to changing retail demands and restore much needed brand investments to levels before the onset of the pandemic.

Blackmores received $10.4m (pre-tax) in COVID- 19 government assistance, primarily JobKeeper payments.

It will repay $2.4m in the second half.

Mr Symington said the company was in a strong position with cash and cash equivalents totalling $71m after paying down $85m in debt.

“We are now assessing ways of deployment capital.”

Shareholders will receive an interim fully franked dividend of 29 cents per share.