Blackmores Limited

BKL Details
 
The Blackmores Limited (ASX: BKL) share price has dropped 4.4% to $89.81, following the resignation of its CEO Christine Holgate. The company has announced that Chief Executive Officer and Managing Director Christine Holgate will leave Blackmores on 29 September 2017, after nine years of stint at the Australia’s leading natural healthcare company. Further, the board has asked Director Marcus Blackmore to return from sabbatical to step in as Interim CEO till the Board appoints a new Chief Executive Officer, and announced that Stephen Chapman will continue as Chairman after the new CEO has been appointed. Marcus Blackmore will continue as a Director of the company with an added responsibility as Brand President.

Recently, Blackmores has been appointed in a key leadership advisory role to the China Association for Quality Inspection (CAQI), a high-level non-profit Chinese organization with responsibility for product quality inspection. The recognition as Vice President Company of CAQI was fostered with the appointment of Peter Osborne, Blackmores Managing Director, Asia, as Vice Chairman of CAQI’s Advisory Committee, the first and only foreign citizen to hold a CAQI board position. During 9MFY17, the group sales declined by 6.7% yoy to $496 million, while net profit tumbled by 42.8% yoy to $43 million, impacted by decline in Australian sales and higher operating costs. However, sales trend is encouraging with moderate increase in Q3FY17 despite fewer trading days than Q2. NZ and Australian sales declined by 26% yoy $264 million during the same period impacted by changing patterns of Chinese buyers. Given the ambiguity around changing patterns of Chinese buyers and impact on company’s financials going forward,we give an “Expensive” recommendation on the stock at the current market price of $ 89.81


BKL Daily chart; (Source: Thomson Reuters)

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