Blackmores profit plummets as coronavirus continues to plague business
Vitamins and supplements company Blackmores has reported a 46 per cent drop in first half profit, and flagged further trouble from the coronavirus.
Packaging costs coupled with regulatory change in China over the period caused problems for Blackmores and resulted in net profit of $18.2 million.
Earlier this month, the company slashed its full-year profit guidance and announced it was scrapping its interim dividend.
Revenue for the six months to December 31 was down five per cent to $303 million, while revenue in Australia and New Zealand alone was down 20 per cent to $115 million.
Blackmores said on Tuesday the coronavirus threat and higher costs from manufacturing would have a material impact on its full-year result.
Chief executive Alastair Symington said costs had increased at a greater pace and company structure had become complex.
The executive team will try and simplify these.
Blackmores will also design products for what it called “the modern career woman” in China.
It will also use its manufacturing and partnerships in Indonesia and India to help growth.