Financial And Operational Highlights Of Blackmores Company

Introduction of Blackmore’s

Discuss about the Report for Financial Analysis of Blackmores Company.

It is a natural health company which is leading in Australia. The founder of this company Maurice Blackmore (1906-1977) was actually passionate about the natural health from the vision of the naturopath. He actually believes that health is more important than anything in life and also he encourages the people that they should take care of themselves as well as their health. This company offers products and services which provides natural approach at a large extent to health which is based on the experts’ advice of vitamins, minerals, herbs and nutrients. They provide the good quality range in vitamin, minerals, herbal, and nutritional supplements.  This company has the most trusted name in the field of natural health as it is concerned about the community and environment and also supports it.

This company offers the best natural health care products and also provides services to the customers in order to meet the highest quality standards. They actually work on the customer satisfaction along with their expectations and to fulfill that expectation. This company was also awarded as the Australia’s ‘Most trusted brand ‘in the field of vitamins which is the supplements for the seventh year running in the year of 2015.

Blackmore’s was established across 80 years ago by the naturopath Maurice Blackmore. This company adopted the naturopathic heritage which affects the Blackmore’s approaches about the health condition and the prosperity of the wellbeing at a large extent. They actually use their traditional approach and also adopt the current approaches for products like they have the knowledge about the herbal things but they also acquire the knowledge about the nutrition for the making of medicines. They research and innovate new things for their product and adopt those changes only which minimize the adverse affect and support the environment as well as community and have the identification as an employer of choice.

This company produced products more than 250 range of vitamins, minerals, herbal and nutritional supplements in their house of experts with the help of ingredients which has the highest quality in the whole world. They produced products according to the requirement of the International Pharmaceutical inspection convention and pharmaceutical inspection co-operation scheme (PIC/s) standards of goods manufacturing practice (GMP).

This company offers the wide range of innovative services to the customer which includes naturopathic advisory service which is absolutely free which is used by the 50000 customers or people last year. This company also has the award-winning website which provides the information to the customer or any person according to their health problem and also about the wellbeing resource. They also provide training and education in order to support their retail partners. They believe in social responsibility towards environment, society which includes about the sustainability like the world wildlife fund sustainable fish oils partnership and supports the community and take innovative steps. They also give charities about millions of dollars according to the running festival (Blackmore’s 2014).

The Blackmore’s Group

It is the ASX 100 publicly- listed company which has the 1000 employees or even more than that in Australia, New Zealand and Asia. They have many consumers in 17 countries which includes-

It is the leading provider about the therapeutic supplements and the healthcare practitioner nutritional in Australia. They adopt the quality, innovation and integrity as their principles in order to guide their work. It has the most important position in order to ensure the complementary and also they have alternative option for the medicines which becomes the important part of the Australian allied healthcare industry.

With above the 80 years of experience for human beings in natural healthcare, Blackmore’s has now decided to extend itself to the animal’s health also and get an experienced about animal health and also the passionate about the animal health division. For this experience, they provided the experts like vet nary doctor which develop the natural healthcare products for animals which is clinically proved.

This institute was launched in 2012. This institute provides the education and training to the experts as well as the new comer who are interested in the field of medicines and they have the experts such as Dr Lesley Braun who is the researcher in the field of natural health. This institute focuses on activities like research, review of natural medicines and knowledge about the programs. This institute also provides credit education like in previous year 4000 healthcare professionals and 10000 pharmacy assistant was got educated.

This company operated in china, Singapore, Thailand, Malaysia, Taiwan, Hong Kong, Korea, Indonesia, Vietnam, Cambodia, Kazakhstan, Myanmar, Mongolia and Japan.

It has joined the Blackmore’s group in 2016. It provides Chinese herbal medicines and has the Australia’s leading provider.

The company has the partnership with Bega in order to produce the nutritional foods with high quality child nutrition range.

There was a huge growth of the company and has the strong leadership quality that the CEO Christine Holgate was announced as the CEO of the year 2015 and is the beginning of the chair of the Australia-ASEAN Council and the Markus Blackmore who is the son of the founder of company Maurice Blackmore is now the chairman of the board (Blackmores, 2014).

The company actually accepts only those brands which is trustworthy according to their needs and requirements and which is also acceptable by the customers, health care professionals and by the government and it must be natural health supplement brand. They have their presence or the name among various multiple channels on the top of e-commerce platforms and also have the distribution offline channel like personal care stores, pharmacy, department stores and hypermarkets. They provide best education class and awareness on local website about the natural health education. They also adopt innovative things and changes for the product development.  

• From the previous year, group sales has been increased by 36% and become $471.6 million.
• Net profit also increased by 83% from the previous year of $46.6 million.
• New products were launched and there was an extension of 170.
• It is recognized as most trusted brand in a category and also maintains that image from seventh year.
• Net debt were decreased by 87% and become $7.1 million.
• Operating cash flow has become doubled.
• Increase in net assets per share by 38%to $5.27.
• Earnings per share also increased by 81.4% and become 270.7cents (Blackmore’s 2013).

Blackmore’s Strategy

Table1

Figure1 group revenue is $471.6millions which represents the growth of the last year’s profit.

Table2

Figure2. Group net profit after tax is $46.6 million which shows the growth of 83% of last year’s profit.

There is growth in profitability by 88% of Blackmore’s Australia. Sales increased by 43% and become $317.4 million. This company maintains their relationship with the retailers and with the customers also and provides them increase in investment by 20%. Blackmore’s New Zealand acquires growth of the sales about 13% which is effective in New Zealand market. The sales of the Asian market were increased by 26% for the year of $84 million which is doubled from the five years ago. Earnings before interest and tax were also increased up to 82% and become $8.3 million. The Malaysia branch of Blackmore’s has increased their sale up TO 10% and earnings before tax and interest sere also increased by 22% to 3.3 million. But the Thailand market was affected by soft market and get decline the sales up to 7% and earnings before interest and tax up to 27%, but it has the contribution towards profit at $6.3millions in group earnings, Whereas Korea, Singapore and Hong Kong were increasing their sales and perform well.

Table3

Figure3. The final dividend per share is 135cents where as ordinary cent is 203cents per share of the whole year, which means that there is 60% increase in total ordinary dividends of 127 cents per share.

Table4

Figure4. the net debt level was $1.7million which is compared to $54.4million from the previous year.

Table5

Figure5. increase in earnings per share by 81.5% to 270.7cents.

3 years history

Statement of financial position

As at 30^th June 2015

Notes to the financial statements

Conclusion:

The Blackmore’s company has a good position in the market with a cash conversion rate of 112% and also has a working capital of $46million and operating cash flow $60million as compared to previous year. Net debt result was positive at $23million with net interest cover at 50times as compare to previous year. The company has good impact on the whole Australian market in purchasing raw material and has the $0.5million net benefit on foreign exchange (Blackmore’s, 2016).

References:

Blackmore’s.(2014).About Blackmore’s .Retrieved on 19 August 2016 from                        

https://www.blackmores.com.au/about-us

Blackmore’.(2014).About blackmore’s.Retrieved on 19 august 2016 from   

https://www.blackmores.com.au/about-us/company-information/about-blackmores

Blackmore’s.ltd.(2013). Presentation to Goldman Sachs Emerging Companies Conference. Retrieved on 19 August 2016 from    file:///C:/Users/Guest/Downloads/analystbriefing.pdf      

Blackmore’s.(2016).Doing business in china. Retrieved on 19 August 2016 from  

file:///C:/Users/Guest/Downloads/Shareholder%20Presentation%206%20May%202016.pdf

Hovers.inc.(2016).Financials Information for BLACKMORES LIMITED.Retrieved on 19 August 2016 from   https://www.hoovers.com/company-information/cs/revenue-    financial.blackmores_limited.90213448103eebc4.html

Finance.ltd.(2016).Blackmore’s the best of health.Retrieved on 19 August 2016 from

https://www.finnewsnetwork.com.au/CompanyReports/Blackmores-Limited/0

Blackmore’s.(2014).investor centre.Retrieved on 19 August 2016 from

https://www.blackmores.com.au/about-us/investor-centre

Blackmore’s.(2014).ASX announcements.Retrieved on 19 august 2016 from

https://www.blackmores.com.au/about-us/investor-centre/asx-announcements

Blackmore’s.(2014).Governance & board of directors.Retrieved on 19 august 2016 from

https://www.blackmores.com.au/about-us/investor-centre/corporate-governance

Blackmore’s.(2013).Improved second quarter result for Blackmore’s.Retrieved on 19 august 2016 from file:///C:/Users/Guest/Downloads/ShareholderLetterHalfYearResultsDec2013%20(1).pdf

Morningstar.inc.(2016).Blackmore’s ltd BKL.Retrieved on 19 august 2016 from

https://financials.morningstar.com/income-statement/is.html?t=BKL&region=aus

Blackmore’s.(2013).welcome to the 50^th annual general meeting of Blackmore’s limited.Retrieved on 19 august 2016 from

file:///C:/Users/Guest/Downloads/AGM%20Presentation%20ASX%20FINAL.pdf

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