The Blackmores Limited (ASX: BKL) share price is trading flat on Thursday following the release of its AGM presentation.
In early afternoon trade the health supplements company's shares are changing hands at $80.75.
What was in Blackmores' presentation?
As well as giving a breakdown on what went wrong in FY 2019, Blackmores provided shareholders with its expectations for the new financial year.
The good news is that although trading conditions remain tough, things appear to have stabilised.
In its guidance for the year ahead, Blackmores continues to expect its profit for the first half to be lower than the prior corresponding period.
Whilst no concrete guidance was given, management advised that it is expected to come in at a similar level to its second half profit. Based on its underlying result, I estimate this to be ~$21 million, which would be a 38% decline on the same period last year.
This has been driven by first half disruptions due to a channel shift, China regulatory changes, increased ingredient costs, and the Catalent transition.
Thankfully, Blackmores expects its performance to improve in the second half. It also noted that its business improvement plan is on track. This plan aims to streamline the organisation and generate cost-savings of $60 million.
Blackmores chairman to retire.
Also, at the event Blackmores announced yet another change in the boardroom.
Chairman Brent Wallace revealed that he will be retiring from the role and the board after 14 years with the company.
He said: "For the past 14 years it has been my great privilege to serve on the Board of Blackmores. However, having begun this renewal process I feel that it is time for me to retire as Chair and from the Board. I will stay on while the Board completes the recruitment process to fill two non-executive director vacancies, at which time a new Chair will be appointed and I will retire. It is also important to note that we have begun this search process."
In addition to this, Marcus Blackmore has advised the board that he will step down as an executive director when Mr Wallace retires. He will, however, remain as a non-executive director and a major shareholder. At the last count he owned 23% of the company.
