Blackmores in trading halt ahead of half year results update
Australian vitamin and supplements company Blackmores has been granted a trading halt, ahead of the release of its half year results which are expected before market trade opens on Wednesday.
A request was submitted to the ASX prior to trading on Monday, and will remain in place until Wednesday, February 12.
Having experienced a slowdown in China over the last 12 months, Blackmores will also have to take into account the impact of coronavirus in the country when it releases its outlook for the full year.
A year ago the company reported China sales were down and began a review of its investment approach in the country.
The company blamed “continuing changes to the way consumers purchase our products as well as higher inventory in the trade and a general softening of consumer sentiment” for the slowdown in sales.
Since the appointment of Alastair Symington as CEO in September, the company has been focusing on rejuvenating the Australian business in order to drive international growth.
“We must respond to pricing pressures and the changing retail environment by reducing costs and improving our revenue management practices,” Symington said in November.
Blackmores told the AFR last week that coronavirus had led to a rise in demand in China in recent weeks but the ban on Chinese tourists to Australia had impacted ”suitcase trade”.
The coronavirus has already impacted some Australian FMCG giants, particularly those with a strong foothold in China, including a2 Milk, Bubs and Aldi.
Read our interview with Blackmores CEO Alastair Symington in our quarterly magazine here.