One of the ASX's best-performing stocks of 2015 has been vitamin retailer Blackmores Limited (ASX: BKL), which managed to gain 19% in the month of July alone.
Over the year the stock has climbed 156% as the company's red-hot sales into Asia earned the stock a significant re-rating over the course of the year. The company now operates in 14 countries including Australia, New Zealand, Thailand, Malaysia, Hong Kong, Singapore, Taiwan, China, Macau and Cambodia.
About 40% of revenues are now generated outside of its core markets and in the vitamin business brand strength is a salient factor in generating consistent sales growth. 'Brand Australia' is one natural advantage the company has in marketing its product in Asia similar to other exporters of Australian food and drink products like Freedom Foods Group Ltd (ASX: FNP) and Treasury Wine Estates Ltd (ASX: TWE).
Another indicator of how important brand is to vitamin companies is the heavy advertising spends of these businesses with Blackmores partnering with Chinese tennis champion Li Na to market its product, while archrival Swisse has recently partnered with the likes of crooner Robbie Williams and cricketer Ricky Ponting.
For the most recent nine-month period Blackmores saw sales grow by 35% in Australia and 18% in Asia, with net profit up 76% over the period. However, it's the accelerating sales trajectory quarter-over-quarter that is exciting the market as countries like Thailand post rocketing sales growth.
The company stated that analysts are expecting a full year profit in the region of $40 million to $44 million and the company has a market value around $1.57 billion. Most of the good news and some great expectations are now priced into a share price of $90 and this looks a stock for investors' watch lists for now.
