The Blackmores Limited (ASX: BKL) share price is surging today, up 12.2% is late afternoon trading.
This puts it firmly at the top of the S&P/ASX 200 Index (ASX: XJO) big gainers board today. The ASX 200 itself managed to shake off the losses from earlier today and is currently up 0.3%.
Today's gain will come as welcome news to shareholders, who've suffered a turbulent year.
Blackmores hit a 1-year high on 5 February of $94.95 per share. From there it plunged 32% through to 28 February. And the share price has seen some big swings higher and lower from there.
Year-to-date. Blackmore's share price is down 15%.
What does Blackmores do?
Blackmores is Australia's leading natural health company. It provides a range of vitamins, herbal and nutritional supplements to markets around the world. The company was founded way back in 1931 by Maurice Blackmore.
Blackmores' shares first traded on the ASX in 1985.
Why is Blackmore's share price up 13% today?
Investors appear optimistic on a string of the company's ASX releases, all announced yesterday.
Blackmore's annual general meeting update sounded some optimistic notes about the near term outlook. Among the highlights stirring optimism, the company is forecasting profit growth for the full 2021 financial year.
As Blackmores' CEO Alastair Symington wrote in a letter to shareholders yesterday, "We are currently projecting first half FY21 Net Sales growth in the mid-single digits range compared to prior year. Both of our Asian regions will be the primary drivers of this growth."
Symington went on to note, "As we have highlighted before, year on year cost variances linked to the October 2019 acquisition of Braeside will negatively impact gross margin in the first half of FY21."
He also noted several untapped opportunities for the all the company's markets, including pet health and mental well being. Symington said the pet health supplement market in Australia is forecast to grow by 9% CAGR over the next 4 years, reaching $100 million. Blackmores also expects to restore future dividends.
In a separate announcement yesterday, Blackmores reported its agreement to sell its Global Therapeutics business to McPherson's Ltd (ASX: MCP) for $27 million.
Global Therapeutics, acquired by Blackmores in May 2016, includes the Fusion Health and Oriental Botanicals brands.
Judging by today's strong share price gains, the divestment of Global Therapeutics and the company's positive forward looking statements have revived investor interest.
