Earnings were hurt by a 4.4 percent increase in production costs, and Symington warned that prices would increase by an average of 5 to 6 percent to cover rising costs for the company’s more than 1,000 products.
The pills and vitamins maker saw growth across all three of its brands — Blackmores, BioCeuticals and its pet vitamins business PAW — for the first time in four years, despite rising costs and supply chain woes.
However, investors punished Blackmores shares, sending it down 10 percent to $73.19 after the company declined to provide earnings guidance for the current year.
Symington said uncertainty brought on by inflation, changing consumer behavior and ongoing global supply chain issues have clouded the outlook.
“You put all of that together and it’s extremely difficult for any company to provide guidance in the current environment,” he said.
Analysts at Ord Minnett cited a lack of quantified earnings prospects, an overall decline in consumer confidence and the fact that Blackmore’s results had benefited from a one-time surge in demand as key downsides.
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https://www.smh.com.au/business/companies/blackmores-warns-of-price-rises-as-it-pivots-away-from-china-20220818-p5barz.html?ref=rss&utm_medium=rss&utm_source=rss_business Blackmores warns of price increases as it turns away from China