Blackmores sees 43% drop in Q3 profits on back of lower China sales

Company News

by Anna Napoli

Vitamin maker Blackmores (ASX:BKL) has announced a 43 per cent fall in profits for the third quarter of 2019 when compared to the year earlier period.

Meantime, revenue of $460 million, rose 6 per cent on the prior corresponding period.

The decline in sales was partly due to a new China e-commerce law which came into effect during the quarter, meaning that some goods being sent to China through e-commerce channels need to adhere to higher product safety standards and a stricter tax regime.

Blackmores says the third quarter has been a “challenging” period for the business.

The company's outlook is for modest full-year revenue growth with second half profit performance not expected to be ahead of the first half result.

Shares in Blackmores (ASX:BKL) are trading 3.55 per cent lower at $86.52.


 

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.