Blackmores Limited Stock Market Press Releases and Company Profile
Half Year Results Announcement
Half Year Results Announcement

Sydney, Feb 25, 2016 AEST (ABN Newswire) - Blackmores Limited (googlechartASX:BKL) has announced continued momentum across its business delivering $48 million net profit after tax (NPAT) for the first half of the financial year, up 160% on the prior corresponding period. The first half profit result exceeds the total profit last year, which was already a strong period.

Highlights

- Group sales of $341 million for the first half, up 65% on prior corresponding period

- First half net profit after tax $48 million, up 160% and earnings per share of 280 cents, up 159%

- Strong financial position with a positive net cash balance

- Interim dividend of 200 cents per share (fully franked), a 194% increase on the prior corresponding period

The results are driven by continued growth from all segments and all markets with first half sales of $341 million, up 65% on last year's first half.

"China, in particular, continues to grow in importance with sales to Chinese consumers, both direct and through Australian retailers, estimated to represent 40% of Group revenues," said Blackmores Chief Executive Officer, Ms Christine Holgate. "Excluding these China sales, we are pleased that both the Group and our core Australian business are still in double digit growth."

Blackmores Australia sales for the period were $238 million, a 73% increase compared to the prior corresponding period with earnings before interest and tax (EBIT) of $64 million. Sales to retailers in Australia have been bolstered by Chinese tourists and entrepreneurs, as well as from continued innovation and marketing activity. This included the launch of a Superfood range, the opening of a flagship store, education programs and digital marketing.

Blackmores Asia direct in-market sales were $61 million, a 73% increase compared to the prior corresponding period. Earnings before interest and tax (EBIT) from the region were $5.8 million, more than three times the prior corresponding period, highlighting the increasing profitability of the Asian business.

"The strength of the brand and proven demand for our products was reflected in sales growth in all of our markets in Asia," said Christine Holgate.

BioCeuticals sales were $33 million, up 24% compared to the prior corresponding period with EBIT of $5 million. The business has a continued focus on delivering new product innovation, professional advice and a commitment to servicing healthcare practitioners.

Blackmores New Zealand and Pure Animal Wellbeing also continued to demonstrate improved sales and earnings performances.

"Blackmores Institute has supported the expansion of Blackmores in Asia given the importance of education and knowledge underpinning the presence of our product range in new markets and the need to educate health care professionals," said Christine Holgate. "This was furthered in the period with a partnership agreement with Rangsit University in Bangkok to expand its pharmacy education program."

Total Group expenses grew 53%, to $273 million, predominantly reflecting the increase of raw materials and freight needed to support the strong growth.

"Meeting the needs of our consumers and the growing demand for our products has been our most important challenge, particularly given our commitment to uphold unrivalled quality standards," said Christine Holgate. "As well as working closely with our growers and ingredient suppliers, we have invested in additional plant and equipment to increase capacity. Combined with the addition of a third production and distribution shift, this has resulted in record productivity for the Group."

"Our partnership with Bega Cheese Ltd (googlechartASX:BGA) to develop and manufacture a range of nutritional foods made exciting progress in the half, resulting in the early launch of an infant nutrition range in January 2016," said Ms Holgate, noting that there are no sales for this new segment included in the first half reporting period.

"We continue to invest in new platforms for growth and strategic partners including a long-term joint venture with Kalbe Farma to facilitate entry into the Indonesian market," said Ms Holgate. The joint venture is called Kalbe Blackmores Nutrition and will be consolidated into the Group's results, though there were no significant transactions during the period.

The Blackmores balance sheet is in a healthy position, with positive operating cash flow at $60 million compared to $29 million in the prior corresponding period. Net debt was cash positive at $23 million with net interest cover at 50 times, compared to 21 times in the prior corresponding period.

"Our continued success has further strengthened our balance sheet with Blackmores now net debt free," said Ms Holgate. "We are proud to be able to give our shareholders a 159% increase in earnings per share and a first half dividend of 200 cents, almost treble last year's first half dividend."

DIVIDEND

The Board has declared an interim dividend of 200 cents fully franked, which is an increase of 194% compared to the prior corresponding period. The record date is 10 March 2016 and the dividend is payable on 24 March 2016.

OUTLOOK

"We are pleased with our continued growth and progress on delivering our strategic objectives," said Ms Holgate.

"Our core business in Australia, New Zealand and the ASEAN region continues to enjoy double digit growth, while our emerging business in China has further propelled our success. We have strong, experienced leadership in China and have structured our operations to ensure a sustainable future."

"The Board maintains its confidence in our ability to achieve strong profit growth for the full year."


About Blackmores Limited

Blackmores Ltd ASX BKLBlackmores Limited (ASX:BKL) (OTCMKTS:BLMMF) is Australia's leading natural health brand. Its quality range of vitamin, minerals, herbal and nutritional supplements, and continued support of the community and environment, are among the many reasons Blackmores is the most trusted name in natural health.

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Contact

MEDIA CONTACT
Sally Townsend
Head of Communications
M: 0419 225 781

INVESTOR CONTACT
Christine Holgate
Chief Executive Officer
+61 2 9910 5186



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