Australian health supplement company Blackmores has reported strong results for the first quarter, with a 15 per cent increase in revenue to $154 million and a 7 per cent lift in net profit.
“During the quarter, gross margins improved and we invested in major strategic initiatives, including a 55 per cent increase in advertising and promotional spend to strengthen our brand,” Blackmores CEO Richard Henfrey said.
Australia and Asia experienced strong sales growth with sales up 19 per cent at home thanks to new product launches and a strong media presence. It remains the number one brand in the vitamins and dietary supplements market in Australia with an overall market share of 17.5 per cent.
China’s in-country sales grew by 30 per cent, supported by promotion on Chinese online platforms. The company acknowledged a significant shift to indirect export through daigou partners.
“When this channel shift is taken into account, overall growth in sales to Chinese consumers is estimated to be strong at 18 per cent,” Henfrey said.
Other Asian countries experiencing strong growth including Hong Kong which was up 59 per cent, Taiwan up 167 per cent and Korea up 76 per cent.
The practitioner-only BioCeuticals range enjoyed sales growth of 13 per cent.
The company also announced that Brent Wallace will be appointed the new chairman effective immediately, as Stephen Chapman retires. Wallace has been a member of the Board since 2005 and has over 30 years’ experience in marketing, advertising and research insights.