Blackmores Limited (ASX: BKL) shares are edging lower on Thursday after the supplements company released its FY21 full-year release. At the time of writing, the Blackmores share price is trading 0.74% lower at $79.20.
Blackmores share price struggles whilst profit surges
The company reported the following key performance results for the 2021 financial year:
- Revenue up 1.3% on the prior corresponding period (pcp) to $575.9 million.
- Underlying group earnings before interest and tax (EBIT) up 51.7% to $47.6 million.
- Underlying group net profit after tax (NPAT) up 51.7% on the pcp to $25.4 million.
- China segment revenue up 17.7% with Australia segment revenue down 14.0%.
- Final dividend of 42 cents per share, fully franked.
The Blackmores share price is struggling to stay in the green on Thursday morning as investors digest the company's latest results.
What happened in FY21 for Blackmores?
Despite a "challenging" operating environment amid the COVID-19 pandemic, Blackmores posted revenue, earnings and profit growth in FY21.
Strong momentum in the group's international and China segments helped offset softer conditions in Australia and New Zealand.
Some of the group's key initiatives for the year included its business improvement program, targeted investment strategy to capitalise on organic growth in Asia and efficiency and price/mix initiatives.
The Blackmores share price has climbed around 17% in the past 12 months despite the challenges faced.
What did management say?
Blackmores CEO Alastair Symington had the following to say about the result:
Blackmores has made strong progress towards delivery against our strategic priorities over the past 12 months by aligning our resources to capitalise on growth markets, channels and segments.
We have a clear path and focus towards achieving our stated FY24 strategic and financial objectives and I am pleased with the progress we are making which is evidenced from the improvements in our earnings profile.
Blackmores remains focused on delivering growth and operational excellence across its 3 brands, 3 focus markets and 5 consumer growth pillars, while maintaining a discplined risk and capital management framework to capitalise on the opportunities and navigate through the challenges that will arise.
What's next for Blackmores?
Blackmores said it is continuing to adapt to the demands of the "rapidly changing health sector". That includes a focus on generating efficiency and cost savings in Australia and New Zealand.
The outlook for its international and China segments remains positive with strong sales momentum to start FY22.
Blackmores share price snapshot
The Blackmores share price has climbed 5.4% higher in 2021 but lags the S&P/ASX 200 Index (ASX: XJO) gains this year. At the current share price, the company has a market capitalisation of around $1.5 billion.
