Blackmores share price skidded lower yesterday, as so many other stocks did in the widespread sell-off, despite a solid first quarter update before the company’s annual general meeting.
The vitamins and health supplements group saw its shares drop more than 5% to $119.50 where they closed.
The recovery no doubt came as investors digested the company’s first-quarter update and found it tasty enough to nibble at a few more shares.
First quarter revenue was up 15% to $154 million, earnings before interest tax depreciation and amortisation rose 11% to $27.05 million and net profit after tax climbed 7% to $16.5 million.
Analysts though singled out the solid domestic performance with strong demand resulted in Australia lifting sales 19% during the quarter.
CEO Richard Henfrey said in the update that “this was supported by our successful ‘Move’ campaign, a strong media presence, new product launches, and lower stock-in-trade levels at the beginning of the quarter.”
Supporting this growth was its China business. Blackmores reported China in-country sales growth of 30% during the quarter. Successful promotions on Chinese e-commerce platforms such as Kaola and Tmall helped underpin this growth.
Blackmore’s also reported strong results from Hong Kong with sales growing 59%, Taiwan sales jumped 167%, and in South Korea sales surged 76%.
The company’s BioCeuticals business saw sales grow 13% during the quarter.
