Blackmores lifts, but China outlook poor
Blackmores has posted a slightly higher half-year net profit but the vitamin maker warns its sales in China are not expected to grow within the next six months.
The company’s net profit was up 0.4 per cent to $34.3 million for the six months to December 31 with total revenue climbing 11 per cent to $319.3 million.
But the health supplements manufacturer said its “reported China segment sales were down 11 per cent in the half compared to the prior corresponding period,” while the company had started a review of its investment approach in the country.
“China sales in the third quarter are being impacted by continuing changes to the way consumers purchase our products as well as higher inventory in the trade and a general softening of consumer sentiment,” Blackmores said in a statement.
“As a result, we do not expect the second half profit performance to be ahead of the first half result.”
Blackmores said its outlook was for modest full-year revenue growth overall.
The company has declared a fully franked interim dividend of $1.50 per share, unchanged from a year ago.