Strong sales in China are driving profit and bigger dividends at Blackmores

The streets of SIngapore. Roslan Rahman/AFP/Getty Images

Australian revenue slipped for Blackmores but the vitamin company is still finding strong sales growth in China and Asia.

Profit for the six months to December was up 20% to $34.18 million and revenue 9.3% to $287.38 million.

In early trade, Blackmores shares fell 14% to $137.19.

The company declared a fully franked dividend of 150 cents a share, up 15%.

“The first half performance gives Blackmores a strong foundation for the full year,” says Richard Henfrey.

“We have delivered an improved sales and profit result whilst investing in growth initiatives.

“We’re particularly encouraged by the progress of our businesses in China and Indonesia.

“Supply issues affecting the Group and the soft Australian 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.”

Revenue in Australia and New Zealand of $121 million was slightly down compared to last year as the broader consumer market remained subdued.

Also sales are continuing to move to direct China channels with fewer people buying in Australia to resell on the China market.

The results for the six months to December:

Source: Blackmores

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