Blackmores has acquired a manufacturing facility in Australia and appointed a new Non-Executive Director as sales and profit growth continue.
A summary of growth and the new appointment includes:
- Net sales for the nine months to March 31 of $434 million, up 8.5 per cent compared to prior corresponding period.
- Net profit after tax of $52 million, up 19.3 per cent compared to prior corresponding period.
- Acquisition of 100 per cent of the Catalent Australia tablet and soft-gel capsule manufacturing facility in Braeside, Victoria for $43.2 million.
- The acquisition should support the group’s growth and product innovation with research and development capabilities and provide greater control over production.
- Jackie McArthur is appointed to the board as Non-Executive Director, with extensive operational expertise across the Asia Pacific region.
“This was a solid result, notwithstanding the impact of supply challenges over the period,” Blackmores CEO Richard Henfrey said. “Blackmores has a strong commitment to Australian and New Zealand manufacturing, and recent structural changes in the sector have affected the supply continuity of many of our smaller lines and brands as well as export sales in the second and third quarters.”
Strong advertising and promotional activity in the quarter supported sales in Australia, which remain broadly in line with the previous year for the nine months to March 31.
Blackmores will acquire 100 per cent of the issued share capital of Catalent Australia Holding from Catalent on a cash- and debt-free basis. The total acquisition cost is expected to be $43.2 million, subject to agreed adjustments.
Completion is expected to occur on or before October 31, 2019 and is expected to be fully debt funded. There is an 18-month completion period for transition for both parties, enabling Catalent to migrate third-party customers to its other facilities while Blackmores moves more products into the Braeside facility.
Meanwhile, Ms McArthur brings more than 20 years’ experience at board and executive levels in supply chain, logistics and operations management.
“Jackie brings extensive operational experience, which will bolster the skills of our board,” Blackmores Chair Stephen Chapman said.
“She has lived in Singapore and led a complex and far-reaching supply chain for a global business across 38 countries including China and from South-East Asia to the Middle East. She is passionate about corporate social responsibility, diversity and developing engaged workforces.”
Ms McArthur was 2016 Telstra NSW Businesswoman of the Year and has a strong interest in natural health.