Having recently celebrated the 30th year of Blackmores as an Australian publicly listed company, the company announced a record sales and profit result for the Group and the highest ever returns for our shareholders.
Group sales of $471.6 million were 36% up on the prior year which delivered a $46.6 million profit, an increase of 83% on the prior year's profit. The solid financial results enabled us to continue to improve our balance sheet with strong cash flows delivering low debt.
As the leader of this team, I am particularly proud that our growth came from all regions and brands. Twelve months ago we were reporting pleasing momentum, which continued to build as the year progressed. The benefits were further bolstered by operational efficiencies and improvements to the Group's cost base, by leveraging our increased volumes and optimising our Warriewood Campus facility.
The higher sales were the culmination of a number of programs we had put in place over recent years including reinvigorating our Australian business, establishing an enterprise in China, investing in our quality and research programs and identifying a strong brand proposition that is supported by a higher level of marketing across the Group.
Consumers, both in Australia and Asia, have a clear preference for high quality products with proven efficacy. Supported by improved trade relations between Australia and several markets in Asia, demand for Blackmores products grew as our marketing message resonated with customers locally.
Our unprecedented levels of growth (including a 50% sales uplift in the second half) have created supply challenges. Our principal concern has been addressing the needs of our Australian consumers who have loyally supported the Blackmores brand for so many years. We have increased our supply significantly, whilst remaining focused on maintaining our unrivalled quality and commitment to sustainability.
Our continued focus has been aligned to the four strategic priorities we committed to deliver at the start of the financial year:
- Support Blackmores Australia to build our brand and return the business to profitable growth
- Invest in BioCeuticals, Blackmores Asia and Pure Animal Wellbeing to continue to diversify our business and build new sources of growth
- Build our product leadership position through the valued research and knowledge within Blackmores Institute and a program of product range innovation
- Continue to improve operational effectiveness and transform our cost profile
Financial and Operational Highlights
- Group Sales of $471.6 million, up 36% on the previous year
- Record net profit after tax of $46.6 million, up 83% on the previous year
- 170 new product launches and range extensions
- Seventh consecutive year as Most Trusted Brand* in our category
- Net debt decreased by 87% to $7.1 million
- Almost doubled operating cash flow
- Net assets per share increased by 38% to $5.27
- Earnings per share of 270.7cents, up 81.4%
* Reader's Digest Most Trusted Brand Survey
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About Blackmores Limited
Blackmores Limited (ASX:BKL) (OTCMKTS:BLMMF) is Australia's leading natural health brand. Its quality range of vitamin, minerals, herbal and nutritional supplements, and continued support of the community and environment, are among the many reasons Blackmores is the most trusted name in natural health.