Blackmores shares plummet as China slowdown hits profits

Company News

by Anna Napoli

Blackmores (ASX:BKL) has announced its half year results for financial year 2019 with a flat net profit result of $34 million, when compared to the year earlier period.

The company says profit was impacted by softening of growth in China, with reported China segment sales were down 11 per cent.

Meantime, revenue rose 11 per cent to $319 million.

The company kept its interim dividend steady at $1.50 per share, to be paid on March 20.

Blackmores says its outlook is for modest full-year revenue growth. But expects China sales in the third quarter to be impacted by continuing changes to the way consumers purchase its products as well as higher inventory in the trade and a general softening of consumer sentiment.

As a result, Blackmores does not expect the second half profit performance to be ahead of the first half result.

And the market doesn't like the results, shares in Blackmores (ASX:BKL) are trading are trading 23.9 per cent lower to $94