The latest surge in the Blackmores share price, spurred by strong sales of its vitamins to Asia, has made the chairman, Marcus Blackmore, a lot wealthier.
He has, according to the annual report to June this year, 4,268,815 shares in the company, which at current prices would be worth more than $850 million.
As chairman, he also pulls in about $760,687 a year in salary and incentives.
In just 12 months, the shares have gone from $31.60 each to bounce through $200 a share, making them the most expensive in Australia.
This has added more than $700 million to Blackmore’s wealth.
Blackmore, who is son of the company founder Maurice, is the largest shareholder with about 19% of the company but he also ensures that everyone who works for him, about 900 people, get a benefit when business is good.
And business is very good at the moment. Quarterly results released today show net profit after tax at $22.6 million, up 161%. Sales increased 65% to $162.2 million in the three months.
The staff at Blackmores are winners with the company policy of sharing 10% of profits with employees. This year, that means a six-week pay bonus.
“At Blackmores, we’ve always been pleased to see staff ownership of shares in our company, in fact 10 of our top 30 shareholders are current or past employees,” Marcus Blackmore says in the latest annual report.
“I’m pleased to see them benefit from the company they have helped build.”
Back in March, when the shares were worth $48 each, Blackmore sold 150,000 shares to reduce his personal debt and to buy a yacht.
Then the sale netted him about $7.2 million. Today, at $200 a share, that would have been $30 million.
The company superannuation fund, which hold about 0.86% of the company, is also in the money. Its holding is now worth about $29 million.
Maurice Blackmore started business in the 1930s. He also established one of Australia’s first health food stores, in 1938 in Brisbane.
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