Shares in Blackmores have jumped as much as 11 per cent after the vitamin maker reported a 19 per cent lift in full-year profit.
The company, reporting its first full-year results since chief executive Christine Holgate left to take charge of Australia Post, said net profit rose to $70 million on the back of strong demand from Asia and what it called operational efficiencies.
Revenue for the 12 months to June 30 rose 8.9 per cent to a record $601.1 million, boosted by a 22 per cent increase in China and 20 per cent growth in the rest of Asia.
The company, which on Tuesday said it was expanding into weight loss with a $9 million deal to buy the Improny brand from pharmaceuticals firm Probiotec, declared a fully franked final dividend of $1.55 – up 15 cents from a year ago.
Chief executive Richard Henfrey, who replaced Ms Holgate last year, said consumer demand across all regions and businesses remained strong.
“Revenue was a record for the group and in the financial year we sold more product than ever in our 86-year history,” Mr Henfrey said.
“The strongest growth continues to come from our businesses in Asia, which delivered record sales in June.”
Mr Henfrey said June’s signing of a joint business plan with Alibaba should lead to growth in the coming year across the Chinese online retail giant’s platforms.
The results mark a recovery after full-year profit tumbled 41 per cent to $59 million in 2016/17 following declining Chinese sales.
In FY17 Blackmores reported $692.8 million in sales, however this has been reduced to $552.2 million following an accounting change.
In FY18 Blackmores changed its revenue reporting from invoice sales to net sales.
At 1200 AEST, Blackmores shares were up $13.88, or 9.6 per cent, at $159.13.
BLACKMORES GOOD MEDICINE FOR INVESTORS
* Net profit up 19pct to $70m
* Revenue up 8.9pct to $601.1m
* Final dividend up 15 cents to $1.55, fully franked