Leading vitamins and nutritional supplements manufacturer, Blackmores Limited (ASX: BKL) now boasts a market capitalisation close to $1.5 billion. The company has just reported a very impressive set of full year results, here's what you need to know.
Results highlights:
- Group sales jumped 36% to $471.6 million
- Net profit after tax soared 83% to $46.6 million
- Earnings per share were up a corresponding 81.4% to 270.7 cents per share (cps)
- Net debt down to just $7.1 million from $54.4 million a year earlier
Divisional result highlights:
- Sales in Australia increased a staggering 43% to $317.4 million with profits leaping 88% higher. Management stated that the strong domestic growth was achieved via "double digit growth across all sales channels including community pharmacy, and appears to have been boosted by increased demand from Chinese tourists and entrepreneurs."
- Sales into Asia grew 26% to $84 million – sales have doubled in the past five years. The earnings before interest and tax (EBIT) contribution from Asia was up 82% to $8.3 million.
- The recently acquired Bioceuticals business has surpassed management's expectations, achieving an 18% increase in sales to $55.5 million with a corresponding rise in EBIT of 27% to $8.7 million.
Dividend:
- A fully franked final dividend of 135 cps has been declared by the board, bringing full year dividends to 203 cps – up 60% on the prior year.
- Shareholders should note that the stock will trade ex-dividend on September 4, with payment scheduled for September 22.
Buy, Hold or Sell?
The past year has been superb for shareholders in Blackmores with the share price rallying 220% to an all-time high above $90. At these levels the stock is trading on a FY 2015 price-to-earnings ratio of 33.4 times. That's a hefty multiple which is in keeping with last year's growth rates, however, investors will need to be comfortable that the group will continue to achieve high growth rates in the current year too.
