Leading Australian supplement brand Blackmores this week reported strong first quarter results, with a 15 per cent increase in revenue to $154 million and a 7% lift in net profit.
Highlights from the company’s first quarter report show:
- Revenue for the quarter of $154 million – up 15% compared to prior corresponding period
- Net profit after tax of $16.5 million – up 7%
- Strong sales growth across Australia and Asia
- Significant brand investment driving revenue growth
“During the quarter, gross margins improved and we invested in major strategic initiatives, including a 55% increase in advertising and promotional spend to strengthen our brand,” Blackmores CEO Richard Henfrey said.
Strong demand resulted in Australian sales growing 19%. This was supported by Blacmores successful ‘Move’ campaign, a strong media presence, new product launches and lower stock-in-trade levels at the beginning of the quarter.
The company says the Australian sales were boosted by retailers more aggressively targeting export trade during the quarter. Blackmores remains the number one supplements brand in Australia with 17.5% market share.
Blackmores’ China in-country sales growth was very strong at 30%, supported by very promotions on Chinese online platforms (Kaola’s Super Brand Day and Tmall’s Enjoyable Day). This demonstrates Blackmores’ strong brand resonance with consumers in China.
Other strong results include Hong Kong sales growing 59%, a move into Costco contributed to sales increasing 167% in Taiwan, and Korea sales were up 76%.
Blackmores has also been able to grow its Indonesian joint venture with Kalbe Farma, with sales up 115% and 3,000 points of distribution secured.
Picture: Blackmores bus advertising campaign, Hong Kong