Trade tensions and border closures hamper Blackmores' (ASX:BKL) sales

Company News

by Michael Luu

Health supplements brand Blackmores (ASX:BKL) has forecasted a weaker sales performance due to a downturn in demand for its products into the next fiscal year.

The Sydney-based vitamins producer has explained that hampered trade relations with China and border restrictions have stifled Blackmores’ sales activity.

The company’s range of vitamins and supplements are popular among international consumers, who experienced a lack of access to retail stores in Australia.

Blackmores has cited a significantly shorter and milder cold and flu season as another possible cause of the drop in demand.

The biopharmaceutical company has assured investors that it is working on expanding its global distribution network and diversify its outlets in the US, Europe and India.

The company also underwent a transition from traditional sales methods to online platforms and plans to ramp up its digitisation campaign.

Shares in Blackmores (ASX:BKL) are trading 2.78 per cent lower at $81.90