Health supplements company Blackmores has reported a marginal slump in sales after demand softened overseas.
For the six months to December 31, group sales fell 1.6 per cent to $338 million offset by a decline in international sales. Statutory tax-paid profit grew 19.6 per cent to $24.3 million.
In Australia and New Zealand, revenue rose 3.9 per cent to $150.8 million with the Blackmores brand maintaining its top spot in the markets.
To offset inflationary pressures, the company implemented supply chain cost-saving measures and average price increases of 5 per cent to 6 per cent.
Sales in China rose 6.1 per cent to $93.7 million while cross-border e-commerce channel sales stabilised. The company credits the Double 11 e-commerce festival as a “key contributor” to sales in this segment.
Blackmores’ international business was “lapped” by significant Covid-related surges in the prior corresponding period and revenue declines in Indonesia. Overseas sales fell 15.1 per cent to $93.5 million however market share and brand strength continued to increase.
Group CEO Alistair Symington said the company’s teams continued to focus on improved customer service levels and new product and brand innovation which drove market share and distribution gains across Blackmores’ core geographies.
The company says it is on track to deliver $55 million of gross annualised savings by the end of this financial year.
- Further reading: Blackmores registers strong growth, momentum expected to continue
