Leading natural health product developer, Blackmores Limited (ASX: BKL) has today seen its share price trend higher following the release of its interim results.
In the six months to 31 December 2014, Blackmores achieved both record revenue and net profit after tax with all regions and brands contributing to the result.
For the half, revenue came in 22% higher at $206.4 million, whilst NPAT was an impressive $18.6 million, up 54% on the prior corresponding period.
In addition to a falling net debt position (from $54.4 million to $36.7 million) the company announced an interim dividend of 68 cents per share, up 55%. The dividend is payable on 13 April 2015.
Commenting on the results, CEO Christine Holgate said, "This is a very encouraging result that was achieved with all regions and brands in the Blackmores Group delivering strong year on year growth. It has positioned us well for the second half whilst enabling us to build a strong balance sheet."
She also said, "Importantly, we are delivering against our four key strategic priorities: to be increasingly consumer centric and grow our Australian business; invest in growth in Asia; leverage knowledge within the Blackmores Institute and drive further product innovation; and improve our operational effectiveness."
Whilst Blackmores Asia was held back by retail challenges in Thailand, leading to a decline in earnings before interest and tax (EBIT) of 15%, the establishment of a free trade zone in China last November coupled with a stronger balance sheet put the group on a good footing moving forward.
Today the company announced it had elected two new managers within its Asia Business, Ms Pussadee Suchitchon and Ms Jin Young Kim.
It also announced the appointment of Chief Financial Officer (CFO), Aaron Canning. Mr Canning replaces Chris Lang who stood down as CFO and Company Secretary.
Should you buy Blackmores shares?
At today's price of $43.21 per share, Blackmores trades on a forward price-earnings ratio of 21 and dividend yield of 3.5%. Whilst that multiple may appear expensive at first glance, analysts are forecasting solid earnings per share growth over the next three years. Therefore it may be worth adding to your watchlist.
