Blackmores Limited (ASX:BKL)

Marcus Blackmore
Interim CEO
Market Cap (AUD): 1.57B
Sector: Consumer Staples
Last Trade (AUD): 90.49 -0.01 (-0.01%)
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1. About

Blackmores is Australia’s leading natural health company. Company’s quality range of vitamin, minerals, herbal and nutritional supplements, and continued support of the community and environment, are among the many reasons Blackmores is the most trusted name in natural health. Blackmores Limited is an ASX 200 publicly-listed company with 1,200 employees in Australia, New Zealand, and Asia.

2. Business model


The Company operates the following divisions:[1]



Revenue ($’000)

% of Revenue

% of Profit (before Int & Tax)

Profit drivers[2]





Sales in Australia and New Zealand, including Pure Animal Wellbeing, were broadly flat, contributing $266 M. Blackmores is the clear number one brand in Australia. The broader consumer market remains subdued and China influenced sales through Australian retailers continue to move to direct export channels. Sales were supported by successful new product launches including 99.9% sugar-free gummy vitamins and a probiotics range that does not require refrigeration





Sales to China, comprising key export accounts and in-country sales, were $143 M, up 22% compared to the prior year.  Consumer demand remains strong across all e-commerce platforms, while Blackmores’ sales channels in China continue to evolve

BioCeuticals Group




Strong performances from Singapore (up 22%) and Korea (up 91%). Thailand and Malaysia delivered continued growth despite being impacted by supply constraints. Blackmores’ emerging business in Indonesia delivered 77% growth compared to the prior year

Other Asia




BioCeuticals, Global Therapeutics and IsoWhey delivered sales of $109 mn, up 13% compared to the prior year. BioCeuticals’ branded products lifted sales by 20%, with Global therapeutics sales flat as a result of stock shortages impacting our smaller lines. These constraints eased significantly in the final months of the financial year






Corporate Costs





3. Strategy


Key Strategies include:[3]


  • Consumer Connectedness – Building deeper connections and leveraging the opportunities that digital technology presents to the category to enhance the consumer experience
  • Innovation & Expertise – Growing the research capacity of the Blackmores Institute and BioCeuticals and leveraging Blackmores’ expertise to increase the knowledge base of natural healthcare for product innovation and accredited education
  • Global Advantage – Nurturing and growing the Australian heartland business to leverage Blackmores’ leadership position in other markets. Continuing to grow across Asia and to explore new frontiers
  • Operational Fitness – Streamlining and simplifying operations, building leadership and cross-cultural skills and capabilities

4. Markets


The Company operates in markets including:[4]


Industry (Australia)

Industry Revenue (2018)

Growth Rate (14-19)

Pharmaceuticals Product Manufacturing  

$8 billion

(3.3%) (13-18)

Pharmaceuticals Wholesaling

$14 billion


Scientific Research Services  

$8 billion


5. Competition


Major competitors include:[5]


  • AstraZeneca (LON:AZN)
  • Pfizer Australia (ASX:PFE)
  • GlaxoSmithKline (LON:GSK)
  • Sigma Pharmaceuticals (ASX:SIP)

6. History



The Company had its beginnings in the 1930s, thanks to the vision and passion of one man, Maurice Blackmore (1906-1977), who was an English immigrant with ideas about health way ahead of their time



First health food store: Maurice started one of Australia's first health food stores in Brisbane in 1938, and worked with colleagues and friends to establish the first naturopathic colleges and associations in the country



A family business: Blackmores Laboratories was a family business, with the main activity being the development of 'celloid' mineral therapy through a number of naturopathic clinics based mainly in Queensland



Blackmores became a private company: Blackmores was incorporated as a private company on 1 February 1962. The Blackmores Naturopathic Organisation Pty Limited was formed and bought the family business



Product manufacturing: All products manufactured in accordance with the Code of Good Manufacturing Practice



Marcus joined Board of Directors: Marcus Blackmore joined the Board of Directors in 1973



$1 million in sales: Blackmores reached $1 million in sales

Singapore and Malaysia launch: Blackmores launched in Singapore and Malaysia



Blackmores are cruelty-free: Blackmores skin and haircare products included the statement 'No animal has suffered in the creation of this quality product', and were the first Australian company to be cruelty-free



Blackmores moves: Blackmores moved into a new office, warehouse, and manufacturing facility to Balgowlah



Acquisition: Blackmores acquired Vita Glow Pty Limited, a marketer of a range of vitamins and mineral supplements



Blackmores moves: Manufacture of skin and haircare products moved to New Zealand



$10 million in sales: Blackmores achieved $10 million sales

New NZ facility: A new administrative, manufacturing and warehousing facility became operational in Auckland New Zealand



Naturopathic advisory service established: Blackmores established its first naturopathic advisory service

Company name change: The Company changed its name to Blackmores Laboratories Limited and was converted to a public company

New office and warehouse opened: Blackmores opened a new office and warehousing facility adjoining the existing premises

May 1985:Blackmores listed on the Australian Stock Exchange



Acquisitions: Blackmores acquired Abundant Earth, Biogenic Health Foods and Russell's Natural Food Markets, merged to form the Blackmores Food Division. Blackmores also acquired the independent distributors of Blackmores products in Victoria and Western Australia.

Another acquisition: Blackmores acquired the 55 store Healthy Life retail chain

Manufacturing move: The manufacturing of all skin and haircare products was transferred to the Blackmores facility in Balgowlah in NSW facility from the New Zealand facility.



Japan launch: Blackmores launched skin and haircare into the Japanese market

First naturopathic clinic: Blackmores established its first naturopathic clinic in Sydney

Employee share plan: Blackmores’ employee share plan was implemented



Blackmores sponsors Kay Cottee: Blackmores sponsored Kay Cottee to be the first woman in history to sail single handed, non-stop, unassisted around the world. Blackmores then supported Kay to raise $1 million for Life Education

Restructure: Healthy Life is restructured from a franchise group to a license/banner group



Company name change: The Company's name was changed from Blackmores Laboratories Limited to Blackmores Limited

New complex opened: The new New Zealand manufacturing, distribution, and office complex in Auckland was opened

Three Island Yacht Race: The Blackmores Three Island Yacht Race was established to raise funds for Cure Cancer Australia. By 2007, $7 million has been raised to support cancer research

Thailand launch: Blackmores launched in Thailand



Skincare range launch: Blackmores launched a skincare range in the United States



Sale of Russell’s Natural Food Markets: Blackmores sold Russell's Natural Food Markets



Blackmores relocates: Blackmores relocated warehouse and distribution facility to cope with expansion



Indonesia launch: Blackmores launched in Indonesia

US subsidiary closed: Blackmores closed US subsidiary and completed a management buy-out of the UK subsidiary

Environment Committee formed: Blackmores formed an Environment Committee to ensure the Company stayed at the forefront of environmental issues

Staff Enterprise Agreement implemented: Blackmores implemented the Blackmores Limited Group Staff Enterprise Agreement



Blackmores launched website: Blackmores launched a website with product and ingredient information

Blackmores integrates VitaGlow: VitaGlow Pty Limited business operations were fully integrated into Blackmores

Blackmores wins environmental award: In conjunction with Manly Environment Centre and OzGREEN, Blackmores was awarded the NSW Department of Land and Water Conservation's Rivercare 2000 Gold Award for the Kids, Companies and Creeks project



Warehouse and distribution move: Victorian warehouse and distribution were centralised to Brookvale facility in NSW

Shareholder Discount Plan: Blackmores established Shareholder Discount Plan for purchase of product at 25% off recommended retail price



New Zealand operations close: Blackmores closed the packaging operations in New Zealand

Marcus Blackmore honoured: Marcus Blackmore was awarded an AM in the Queen's Birthday Honours list, a testament to both his personal commitment and the Company's dedication to the industry and the community



Blackmores subcontracts skincare: Blackmores subcontracted skincare manufacturing to achieve operational improvements and reduce complexity



Reader’s Digest survey recognition: A Reader’s Digest survey voted Blackmores as the most trusted health and supplements brand.

Blackmores expands into Coles: Blackmores expanded distribution into the Coles group of grocery outlets



Reader's Digest survey winner: A Reader's Digest survey recognised Blackmores as the most trusted health and supplements brand

Health supplements increase: The consumer price of health supplements increased by 10% due to the implementation of GST to replace nil wholesale sales tax on these products

Blackmores reached gold level: Blackmores reached gold level in the NSW government's Sustainable Energy Development Authority's Energy Smart business program

Computer systems upgraded: Blackmores underwent an extensive computer systems upgrade involving the complete replacement and upgrading of the information platforms and systems

National Packaging Covenant signed: Blackmores became a signatory to the National Packaging Covenant



Lyprinol launch: Blackmores launched Lyprinol, a unique patented green lipped mussel oil that provided symptomatic relief of osteoarthritis

Macu-Vision launch: Blackmores launched Macu-Vision, donating a percentage of sales to the Macular Degeneration Foundation of Australia (and by 2009 Blackmores reaches $2 million in Macu-Vision® sales)

Auckland premises sold: The Auckland premises in New Zealand were sold, and despatch and distribution operations were outsourced

Blackmores wins environmental award: Blackmores won the Gold Energy Smart Green Globe Award

Database growth: The subscriber database for Blackmores' online newsletter grew to 13,000



Pan medicine recall: Pan Pharmaceuticals faced largest ever recall of medicines in Australia. The impact on the CM industry was unprecedented. Blackmores, having never used Pan as a manufacturer, experienced a significant sales lift



Marcus Blackmore becomes Chairman of the Heart Research Institute: Marcus Blackmore became Chairman of the Heart Research Institute

Blackmores Sydney Running Festival: Blackmores gained the naming rights for the Sydney Marathon Festival with over 12,000 competitors

Database growth: Since the launch of the Blackmores website, the number of online subscribers to the Blackmores free e-newsletter grew to more than 100,000



Relocation plans: Blackmores commenced planning to move to a new site at Warriewood on Sydney's northern beaches

Blackmores Sydney Running Festival: Blackmores Sydney Running Festival attracted 15,000 competitors

New distributors appointed: Blackmores appointed new distributors in Singapore and for the practitioner-only business in the United Kingdom

Blackmores focused on supplements: Blackmores absorbed key VitaGlow products into base Blackmores brand, and ceased marketing skin and haircare, to focus on supplements



Blackmores plans to relocate: Blackmores completed sale of existing premises at Balgowlah and planned to relocate operations from Balgowlah and Brookvale to a new 25,000 square metre site at Warriewood on Sydney's northern beaches

Hewitt Best Employer Award: Blackmores was awarded a Hewitt Best Employer Award

Pharmaceutical Packaging Action Evolution Award: Blackmores received the inaugural Pharmaceutical Packaging Action Evolution Award

National Packaging Covenant: Blackmores signed the new National Packaging Covenant, maintaining a commitment to minimise packaging waste

Blackmores Sydney Running Festival: Blackmores Sydney Running Festival was held with more than 17,600 participants



BRW include Blackmores: Business Review Weekly included Blackmores as the 15th best-performing company in Australia based on average return on shareholder funds

Blackmores Sydney Running Festival: Blackmores Sydney Running Festival has over 20,000 participants

Ethical Investor Award: Blackmores received the Ethical Investor 2006 Sustainable Small Company of the Year Award

‘B your Best’ launch: B your Best, a new creative advertising campaign, was launched

Blackmores Research Symposium: The Company launched the Blackmores Research Symposium

Taiwan launch: Blackmores launched a range of 15 products into Watson's stores in Taiwan, marking the Company's first new market entry in a decade

New Collective Agreement: Blackmores introduced a new Collective Agreement which was supported by an unprecedented 97.5% of staff



Blackmores received awards: Blackmores' strong financial results, leadership, and innovation were recognised with a number of awards, including 2007 Best Managed Company in Australia (small cap corporate of the year) by Asia Money Magazine

Blackmores Sydney Running Festival: Blackmores Sydney Running Festival has a record 25,200 entrants

Blackmores wins Evolution Award: Blackmores won second Packaging Magazine Evolution Award in the pharmaceutical category for minimising packaging waste

Online community grows: Blackmores’ online community grew to over 230,000 users

New CEO and MD Christine Holgate: Christine Holgate commenced as Chief Executive Officer and Managing Director

Blackmores Research Symposium: Blackmores’ second Research Symposium built on the success of the first, focused on lifestyle diseases of the 21st century



Charitable support for eye health: Blackmores began supporting the Macular Degeneration Foundation of Australia, as sales of Blackmores Macu-Vision reach $2 million

Reader's Digest survey winner: A Reader's Digest survey recognised Blackmores as the most trusted health and supplements brand

$200 million in sales: Blackmores achieved $200 million in sales

Blackmores Sydney Running Festival: The company's iconic annual event attracted a record 32,000 entrants

Enterprise agreement: The New Enterprise Agreement was supported by 96% of staff



Reader's Digest survey winner:  A Reader's Digest survey recognised Blackmores as the most trusted health and supplements brand for the second year in a row

Blackmores Research Symposium: Blackmores’ third Research Symposium brought together leading international and Australian researchers to explore and present the latest advances in complementary medicine

Education and training: Health information seminars and training were delivered to 10,000 people during the year

Ask A Naturopath service: Blackmores’ naturopaths provided advice and support to 57,000 people via its online service and free call Naturopathic Advisory Service

$20,000 for tsunami victims: Staff raised more than $20,000 to support the Samoan village of one of Blackmores’ valued employees

Improved production capacity: A new line and improved product flow resulted in an extra 26% production capacity – 82,000 units a day

New website launched: The company's  new website provided unprecedented health information and interactivity with customers

Asia growth: The company's  Asian business delivered underlying growth of more than 25% across the Group

Animal health business: Blackmores acquired Pure Animal Wellbeing Pty Ltd (PAW) to provide a range of natural pet products

Korea launch: Blackmores entered the South Korean market



Reader's Digest survey winner: A Reader's Digest survey recognised Blackmores as the most trusted health and supplements brand for the third year in a row

Biggest online health community: Online membership via the company's website reached 360,000

Operational excellence: Blackmores introduced pre-labelled bar-coding of incoming components which speeds up the receiving process

South-east Asia success: Blackmores won the Reader’s Digest Most Trusted Brand award for six years running in Thailand, and the prestigious Superbrands award in Malaysia

Macular Degeneration Foundation: Blackmores’ total contribution to the Macular Degeneration Foundation reached $3 million

Industry accolades: Blackmores was awarded NSW Business of the Year 2011 and Employer of Choice for NSW 2011



Reader's Digest survey winner: A Reader's Digest survey recognised Blackmores as the most trusted health and supplements brand for the fourth year in a row

China product registration: Blackmores registered a range of products for sale in China in preparation for launching in that market

Eco Krill launch: Blackmores launched Eco Krill, the only truly sustainably sourced krill certified by the Marine Stewardship Council which is supported by WWF

Blackmores Sydney Running Festival 2012: The company's iconic sporting event attracted 35,000 participants and raised over $2 million for charity

Blackmores’ Dr. Paul Beaumont Research Fellowship: Blackmores established the Blackmores Dr. Paul Beaumont Research Fellowship in honour of the founding director of the Macular Degeneration Foundation

WWF Sustainable Fish Oils Partnership: Blackmores partnered with the global conservation organisation WWF as part of its commitment to achieve the highest possible standard of sustainability for its fish and krill oils

BioCeuticals acquisition: Blackmores acquired BioCeuticals, the leading brand of practitioner products in Australia

Blackmores Institute launch: Blackmores Institute was established as a centre of excellence for knowledge and research



Pregnancy & Breastfeeding Gold: Blackmores Pregnancy & Breastfeeding Gold was reformulated especially for mums in Australia, based on the most up-to-date recommended daily intake (RDI) of nutrients for pregnant and breastfeeding women as determined by the National Health and Medical Research Council of Australia (NHMRC) and Australian guidelines

Reader's Digest survey winner: A Reader's Digest survey recognised Blackmores as the most trusted health and supplements brand for the fifth year in a row

Foodbank partnership: In a first for Australia, Blackmores began donating vitamins and supplements to those in need in collaboration with Foodbank, Australia’s largest hunger relief agency

25 clinical trials and research partnerships: To support the efficacy of the company's  products, Blackmores invested in over 25 clinical trials and partners with leading educational and research institutions

Production record: The Blackmores production team packaged a record 500,499 units in a single week

Sales up 25%: Strong sales of $327 million, up 25% on previous year

Reducing carbon emissions: Conversion of all fleet vehicles to LPG or diesel was completed

Quest for Life partnership: Blackmores and Quest for Life announced a new partnership aimed at better physical, emotional, and mental health for Australian communities

Blackmores honoured by Heart Research Institute: Blackmores was honoured for 20-year support and its role in raising $7M for Heart Research Institute

China and Macau launch: Blackmores commenced operations in the new international markets of China and Macau

Education accreditation: Blackmores was accredited by the Royal Australian College of General Practitioners and the Australian Pharmacy Council to provide professional education on complementary healthcare and is able to award CPD points



Australian Packaging Covenant recognition: Blackmores received an accolade for their high achievement in reducing the environmental impact of their packaging

Blackmores partners with Michelle Bridges: Australia’s most influential health and fitness expert, Michelle Bridges accepted role as head coach for the Blackmores Sydney Running Festival, coinciding with the launch of her own range with Blackmores

New headquarters for Blackmores Asia: The company's Asia Head Office opened in Singapore, with Blackmores now operating in nine Asian countries

Associate Prof Lesley Braun joins Blackmores Institute: Noted evidence-based complementary medicine researcher and author, A/Prof Lesley Braun, became Director of the Blackmores Institute

Reader's Digest survey winner:  A Reader's Digest survey recognised Blackmores as the most trusted health and supplements brand for the sixth year in a row

Advisory Naturopaths Award: The Blackmores Advisory Team was awarded ‘Most Outstanding Industry Contributor of the Year’ by Complementary Medicines Australia for services provided via Blackmores’ free Naturopathic Advisory Service



Online store in China: Blackmores became one of the first few global healthcare brands to set up an international online store on, marking yet another key milestone for its business development in China

New Global Brand Ambassador Li Na: Blackmores signed on legendary Chinese tennis champion Li Na as their Global Brand Ambassador to support health and wellbeing activities across Asia and Australia

Be A Wellbeing Campaign: Blackmores launched its highly successful Be a Wellbeing campaign and hosted Blackmores Yoga events around Australia

Blackmores in Central Asia: Blackmores expanded to Kazakhstan

Maurice Blackmore Chair of Integrative Medicine: Blackmores proudly announced the establishment of a new term Chair position at the Sydney Medical School at the University of Sydney, in honour of the Blackmores’ founder, Maurice Blackmore

Production 24/7: Blackmores commenced a permanent night shift at its production facility at Warriewood Campus to meet increased stock demands

Inaugural Asia Symposium: The first Blackmores Institute Asia symposium “Integrating Complementary Medicine into Community Pharmacy – An Evidence-Based Approach” was held in Kuala Lumpur

Meet Pawl B More: Blackmores Animal Health introduced Pawl B More, a ‘talking’ Kelpie Cross Border Collie to provide pet parents with trusted advice

Australia-ASEAN Council: Blackmores CEO Christine Holgate was appointed the inaugural chair of the Australia-ASEAN Council

Blackmores Sydney Running Festival 2015: More than 30,000 people participated in the Blackmores Marathon, Blackmores Half Marathon, Blackmores Bridge Run 9km and the Medibank Family Fun Run 3.5km, raising more than $1.2 million for selected charities

Blackmores Institute Symposium: The event, ‘Translating Research Into Practice', was a sell-out amongst pharmacy and general practice delegates

Kalbe Blackmores Nutrition in Indonesia: Blackmores signed a joint venture with Kalbe Pharma, one of the largest healthcare companies in South East Asia, to facilitate entry into the Indonesian market

Blackmores Community Open Day: More than 4,000 people visited the Blackmores’ Warriewood Campus in Sydney to enjoy activities ranging from health talks to green-living workshops to help support 25+ local community organisations

Australian Recycling Label: Blackmores proudly became one of the first companies to adopt the new Australian Recycling Label, launched by Planet Ark

CEO of the Year awards: Blackmores CEO Christine Holgate was named CEO of the Year by CEO Magazine. She was the first woman to receive this award. Christine was also named CEO of the Year by the Daily Telegraph and recognised in the top 100 Women of Influence in Australia

Flagship store: Blackmores brought well being to life with the launch of the first Australian Blackmores Flagship Store at Westfield Bondi Junction – the ultimate destination for well being, a place to empower and inspire you to live a healthier life naturally

Blackmores was honoured with numerous awards, including

  • Reader’s Digest Most Trusted Brand (Australia, Malaysia & Singapore) in the Vitamins & Supplements category, making it the seventh consecutive year Blackmore have received this esteemed accolade in Australia
  • Brand Laureate/ Brand Leadership Awards for (1) Nutraceutical Man of the Year (Marcus Blackmore) and (2) Best Brand in Wellness (Malaysia)
  • National Export Award
  • Australian Packaging Covenant High Performer Award
  • Hong Kong Business Excellence Award
  •  AC&E Award for UX, Interface & Navigation Design (website redesign)
  • Australian Business Awards for (1) Product Excellence (PAW) and (2) Employer of Choice (PAW)
  • Australian Growth Company Awards for (1) Health & Life Sciences Growth Company and (2) Women in Leadership (CEO Christine Holgate)
  • Auscham-Wespac Australia-China Business Award



Infant Nutrition Range launch: Blackmores in partnership with Tatura launches the Blackmores Infant Nutrition Range at a special event featuring CEO Christine Holgate, Bega Executive Chairman Barry Irvin; Trade Minister The Hon Andrew Robb AO; and Chinese tennis star and Global Blackmores Ambassador Li Na.

Australian Open: Blackmores sponsors the Australian Open and runs the successful ‘Wellbeing Oasis’ on precinct.

Australia Week in China: Blackmores participates in an extensive range of activities at Australia Week in China, including the launch of Blackmores support of Fan Bing Bing’s Heart Ali charity project which was presided over by Mrs. Lucy Turnbull AO, wife of Australian Prime Minister Malcolm Turnbull.

Rangsit University MoU: Blackmores Institute and Thailand's Rangsit University sign a memorandum of understanding to develop pharmacy education programs.

Global Therapeutics: Blackmores acquires Global Therapeutics, Australia's leading Chinese herbal medicine company which includes Fusion Health and Oriental Botanicals.

Best Employer: Blackmores is recognised as one of Australia’s Best Employers by the prestigious Aon Best Employer awards

Inaugural Sustainability Report: Blackmores launched its inaugural sustainability report

Blackmores Sydney Running Festival: Iconic sporting event attracted 33,000 participants.

Sustainability recognition: Blackmores is made a Bronze Partner in the NSW Government Sustainability Advantage program for its environmental achievements.

Christmas Twilight Charity Market: Blackmores hosts more than 60 fair trade, social enterprise and community stallholders at Warriewood Campus to help raise money for charity.



Australian Open: Blackmores sponsored the Australian Open and runs the successful ‘Wellbeing Oasis’ on precinct.

Wellbot for wellbeing: Blackmores launched Australia’s first interactive health bot

China product launched: Blackmores infant nutrition range hits shelves in China, celebrated at the opening of a flagship store in Changsha.

Building knowledge in Malaysia: Blackmores Institute signed MoUs with Malaysian Pharmaceutical $10 million gift to advance research and education: Blackmores and the Blackmore Foundation each gifted $5 million over seven years to the National Institute of Complementary Medicine (NICM) at Western Sydney University Society (MPS), National University of Malaysia (UKM) and Taylors University (TU).

Vietnam distribution agreement: Blackmores partnered with the Mesa Group, Vietnam’s leading distribution company with a network of 150,000 retail stores.

Blackmores Sydney Running Festival: Iconic sporting event attracted 33,000 participants and raises over $1.5 million for charity.

Sustainability recognition: Blackmores was made a Silver Partner in the NSW Government Sustainability Advantage program for its environmental achievements.

7. Team


Board of Directors[7]


Brent W Wallace – Chairman

David Ansell – Independent Director

John Armstrong – Independent Director

Marcus C Blackmore – Executive Director & Interim CEO

Stephen Chapman – Non-Executive Director

Christine Holman – Non-Executive Director

Jackie McArthur – Non-Executive Director

Helen Nash BA – Independent Director


Management Team


Adjunct Associate Professor Lesley Braun – Director, Blackmores Institute

Aaron Canning – Chief Financial Officer

Cecile Cooper – Company Secretary & Director of Corporate Affairs

Jeremy Cowan – Chief Operations Officer

David Fenlon – Managing Director, Australia & NZ

Jane Franks – Chief People Officer

Peter Osborne – Managing Director, Asia

Brett Winn – Chief Information Officer

Eyal Wolstin – Managing Director, BioCeuticals

read more

8. Financials


2018 Full Year Results Presentation


Financial Year 2017/2018 (ended 30 June):[8]



Revenue ($’000)

% Change

Profit (before Int & Tax) ($’000)

% Change











BioCeuticals Group





Other Asia










Corporate Cost










9. Risk


Industry Risk[9]

Quality or claims breaches by competitors or suppliers impact the credibility of the industry domestically and internationally.  


Supply Constraints

Blackmores’ high quality and sustainability standards and limited availability of natural ingredients puts pressure on the continuous supply of some key product.


Product Quality Issue

Financial loss due to:

  • Delay in restoring supply of product for sale.
  • Product recall and reformulation costs.
  • Reduced industry capacity.


Brand Damage

Brand damage caused by a product or industry related event resulting in loss of share and value


Cyber risk

Co-ordinated attacks on critical infrastructure resulting in system outage or theft of confidential, personal or financial information.


Financial and treasury risk

Financial and credit risks including negative impact on profit, balance sheet and cash flow. Treasury risks including a change in exchange rates, ingredient prices, interest rates, and funding causes a financial loss.


Regulatory Changes

Government policy and regulation may change and restrict or limit the ability to sell existing product or ranges in key markets


Reliance on Customers and Markets

  • Financial loss due to reduced revenue of a key customer or market
  • Greater financial cost to serve customers due to aggressive competitors
  • Financial loss due to a large bad debt


Foreign Currency Risk

The Group undertakes transactions denominated in foreign currencies; consequently exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward exchange contracts.

The Group’s material exposure to foreign currencies includes New Zealand Dollar (NZD), United States Dollar (USD), Euro (EUR) and Canadian Dollar (CAD). Other currencies include Swiss Franc (CHF), British Pound (GBP), Japanese Yen (JPY), Malaysian Ringgit (MYR), Thai Baht (THB), and Taiwan Dollars (TWD); however, the exposure to these currencies is immaterial.


Interest Rate Risk

The Group is exposed to interest rate risk as it borrows funds on a floating interest rate basis. The risk is managed by the Group by the use of interest rate swap contracts.


Credit Risk

The Group is exposed to counterparty credit risk from trade and other receivables.


Liquidity Risk

Exposure to liquidity risk derives from the Group’s operations and from the external interest-bearing liabilities that it holds.