'Ongoing uncertainty': Blackmores (ASX:BKL) share price falls 6% on cloudy future

Uncertain times overshadow Blackmores half year of growth…

| More on:
Falling pills in a blue background symbolising a falling share price.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Blackmores share price is down 6.2% today after releasing its half-year results for FY22 
  • Revenue, earnings, and dividends have improved year on year 
  • A lack of guidance might have shareholders unsettled 

The Blackmores Ltd (ASX: BKL) share price is failing to attract buyers following the release of its first-half results for FY22.

At the time of writing, shares in the health supplement company are swapping hands for $86.93 apiece, down 6.2%.

Blackmores share price uninspired by positive performance

  • Group revenue up 14.3% on prior corresponding period to $346 million
  • Gross profit up 19.4% to $187.6 million with a margin improvement of 2.3 points
  • Underlying EBIT of $38.3 million, reflecting an increase of 21.2%
  • Underlying net profit after tax (NPAT) of $20.8 million, up 9.6% year on year
  • Fully franked interim dividend of 63 cents per share, up 117% year on year

What else happened during the first half?

The Blackmores share price is firmly in the red on Thursday despite its improving figures for the six-month period. During the first half of FY22, the company achieved revenue growth when viewed at a group level. However, the results were more mixed when looking at the granular details.

For example, the international segment of the business — including Indonesia, Thailand, and India — delivered a 49.8% increase in revenue, hitting $116.2 million. In contrast, revenue across the Australia and New Zealand (ANZ) segment suffered a 1.2% fall to $145.9 million.

Although, the company's China operations experienced an 8.5% lift in revenue. This was driven by growth in Blackmore's direct cross-border e-commerce channel, which now accounts for 70% of sales in the China segment.

Inflation worries could also be playing into the Blackmores share price. During the half, the company managed to implement price increases across its various segments.

In China, an average increase of 3% was applied, while the international segment experienced greater increases. Meanwhile, only a 0.5% increase was successfully implemented for ANZ, reflecting the more competitive market.

What did management say?

Discussing how the company is positioning for the next half, Blackmores chief executive officer, Alastair Symington said:

While the first half results are pleasing, we continue to face significant challenges linked to global supply chain disruption and uncertainty due to COVID-19 outbreaks which has affected traditional retail channels and impacted consumer behaviour across all our markets.


For the remainder of the financial year, we continue to be focused on delivering against our strategic game plan while maintaining a disciplined risk and capital management approach. In doing so, we are positioned to navigate through the challenges and capitalise on the opportunities that will arise.

What's next?

Conveying a cloudy outlook, ASX-listed Blackmores did not provide any earnings guidance for the second half. Though, it does expect operations to continue slowly recovering in Australia. Accompanying this slow growth will be a 'step up' in brand advertising across the region.

Nonetheless, the company cites 'ungoing uncertainty' caused by COVID-19 as the reason for its inability to provide guidance.

On a positive note, shareholders can expect to receive a dividend payment on 12 April 2022.

Blackmores share price snapshot

The past year has had its ups and downs for the Blackmores share price — swaying from as low as $63 to as high as $104. But for those investors willing to hold on through it all, they have been rewarded with a return of 12.3%. For context, the S&P/ASX 200 Index (ASX: XJO) is only up 3.5% during this time.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Blackmores Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Earnings Results

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Earnings Results

ASX 200 stock jumps 10% on strong FY24 results

How did this KFC restaurant operator perform in FY 2024?

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.
Consumer Staples & Discretionary Shares

Guess which ASX 200 stock just slashed its final dividend by 23%

This retailer had a tough time during the 12 months. Here's how it performed.

Read more »

Man jumps for joy in front of a background of a rising stocks graphic.
Earnings Results

Catapult shines: 20% sales growth propels ASX tech stock to new 52-week high

A strong annual result from this tech player has caught investor attention.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Earnings Results

Xero share price leaps 8% on staggering earnings upheaval

A major turnaround in profitability is sending investors into a frenzy over Xero shares today.

Read more »

a construction worker sits pensively at his desk with his arm propping up his chin as he looks at his laptop computer while wearing a hard hat and visibility vest in a bunker style construction shed.
Materials Shares

Which ASX 200 stock just plunged 12% despite record full-year earnings?

It looks like an impressive report card but UBS doesn't like the FY25 guidance.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

ASX 200 tech stock lifts off on another record-setting half-year profit

Investors are bidding up the ASX 200 tech company following its half-year results.

Read more »

increasing rural asx share price represented by happy looking sheep
Earnings Results

Why is this ASX All Ords stock staying strong as profits crash 76%

How is this company's share price marching higher after mowing down more than three-quarters of its profits compared to a…

Read more »

Two men sit side by side on a couch with video game controls in their hands and expressive looks on their faces as they react to the action in front of them in a home setting.
Earnings Results

Guess which ASX 200 stock is surging 11% on an 'outstanding' result

This ASX gaming giant just posted a 17% jump in profits, and its shareholders are basking in the glory.

Read more »