The vitamins group Blackmores will increase investment in its key China growth market, enter India within a year and launch a series of new supplements for pets.
The moves are part of a comprehensive overhaul of the group's strategy unveiled by the company on Tuesday morning, as the group confirmed news released earlier this month that its first half net profit had fallen 47 per cent to $18.2 million.
Blackmores’ overhaul strategy has laid out four key priorities for the group; rejuvenating its Australian operations, drive new growth in Indonesia and India, appeal to the “modern career woman in China”, and make the organisation world class.Credit:John Woudstra
"Over the past few months, we have identified opportunities to focus our strategic effort and investments on fewer, more premium brands in a focused group of markets and channels," the company said in a statement.
"To begin on a path to deliver sustainable, profitable growth over the next four years, we will simplify our operations and increase productivity over time," Blackmores said.
The strategy laid out four key priorities for the group; rejuvenating its Australian operations, drive new growth in Indonesia and India, appeal to the "modern career woman in China", and make the organisation world class.
Blackmores went into an unexpected trading halt earlier this month, ahead of the release of a trading update which disappointed the market. In response to the update, which revealed the net profit plunge and the decision to scrap the interim dividend, Blackmores shares fell 12.8 per cent on the day.
The group said on Tuesday that plans were underway to strengthen its Australian business, with a focus on improving gross margins.
The strategic review comes just a few months into the tenure of new chief executive Alastair Symington, who was selected to fill the high pressure role after a lengthy global executive search.
In an interview with The Age and The Sydney Morning Herald in October Mr Symington said the company was trying to develop too many products at once, and needed to sharpen its focus on products that were financially viable.
"We've got more than 200 projects in our innovation funnel right now. [For] a company of our size that's too many, we need to get to a much sharper list," he said at the time.
Shares in Blackmores closed down 2.6 per cent on Monday at $69.72, on a day the broader market fell 2.3 per cent.
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