The son of the late founder of Blackmores stepped in as interim CEO at the beginning of April and now the company has revealed the state of the group he's inherited.
At the end of 3Q19 Blackmores' profit was down 43 per cent to $10 million.
Revenue was also down 4 per cent to $141 million.
For the first nine months the company recorded profit of $44 million, down 14 per cent on the prior corresponding period.
The interim CEO and son of Blackmores founder Maurice Blackmore, Marcus Blackmore, says the company is working on turning these results around.
"The third quarter has been challenging for the company. However, we firmly believe that this result does not reflect the long-term growth potential of the business," says Blackmore.
"We are committed to a major streamlining of the business to simplify and improve our process and structure."
"Targeting $60 million in savings over three years through a business improvement program allows us to continue investing in key strategic initiatives, build our capability and deliver overall margin improvement."
Though the group's results are weaker than last year the brand remains to be the number one in Australia, with nearly 15 per cent market share. However, revenue in Australia and New Zealand for the quarter was down 26 per cent to $54 million.
The most positive result from 3Q was the company's Asia figures. In China sales were up 19 per cent, and the company says it is looking to take advantage of Chinese interest in the brand.
"Reflecting the ongoing evolution in the way Chinese consumers access our products, we have undertaken a major strategic review on how to maximise our Chinese consumer facing opportunity, including supporting daigou to more deeply engage with the Blackmores brand," says Blackmores.
Across Asia the company recorded strong sales for the quarter. Taiwan increased 81 per cent, Hong Kong 18 per cent, Korea 13 per cent, and Malaysia 32 per cent.
Business News Australia
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