Blackmores posts record revenue and buys weight program Impromy

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  • Blackmores posts recorded full year revenue of $601 million, up 8.9%.
  • Net profit after tax of $70 million, up 18.6%.
  • The vitamin maker announces acquisition of CSIRO-endorsed weight management program Impromy.

Blackmores posted record a full year revenue of $601 million, up 8.9%, fueled by its businesses in Asia.

Net profit after tax was up 18.6% to $70 million.

The company also announced the acquisition of CSIRO-endorsed weight management program Impromy for $9 million.

In early trade, Blackmores shares were up 9% to $158.50.

“Revenue was a record for the group and in the financial year we sold more product than ever in our 86-year history,” says Blackmores Chief Executive Officer Richard Henfrey.

“The strongest growth continues to come from our businesses in Asia, which delivered record sales in June.”

Sales to China, made up of key export accounts and in-country sales, were $143 million, up 22%.

Blackmores sales in Asia, excluding China, were up 20% to $82 million. Singapore was 22% higher and Korea 91%.

The company announced the acquisition of the Impromy weight management product portfolio for $9 million cash.

Impromy is a pharmacy-only, consultation-based weight management program co-developed by ASX-listed Probiotec and the CSIRO.

“This acquisition supports our strategic priority to drive innovation and leverage expertise in areas of chronic disease, with a program that is evidence-based and has been readily embraced within community pharmacy,” says Henfrey.

The company says Blackmores’ strategy is focused on delivering growth across all regions and brands, underpinned by continued investment in the core business in Australia.

“China continues to be a significant opportunity for Blackmores and in addition to our Alibaba agreement, last week we signed a strategic co-operation with NetEase Kaola,” he says.

“Our vision for China is not limited to e-commerce sales, and we’re actively building our offline business and affirming our credibility as a leading natural health advocate.”

The company declared a final fully franked dividend of 155 cents a share, bringing the total shareholder payout to ordinary 305 cents, up 13%.

Here are the 2018 results:

Source: Blackmores

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