Border closures hit Blackmores’ vitamin sales, but pet pills boom
Blackmores boss Alastair Symington expects national border closures to continue for the rest of this year, but sees big opportunities for the vitamins maker to grow offshore as measures to stop the pandemic are hurting its sales in Australia.
Shares in the $1.5 billion health supplements maker jumped 6.3 per cent to $78.80 on Wednesday morning after the company said it would bring back a 29 cents a share interim dividend and was making good advances on its turnaround strategy despite the pandemic.
The impact of coronavirus was still being felt, however, with sales across Australia and New Zealand down 10 per cent on the prior corresponding period to $148 million as the drop in foot traffic at its stores and a fall in international visitor retail hurt demand for Blackmores’ key product lines.
“We are hearing from the government that borders [will] remain closed until at least the end of 2021, so we are modelling our projections on that,” Mr Symington told The Sydney Morning Herald and The Age, saying the company was looking to revise its online offers and looking to better match products to different retail formats depending on customer demands.