Blackmores Limited [ASX:BKL] share price increased immediately upon opening, after revealing the acquisition of Probiotec Limited’s [ASX:PBP] IMPROMY brand and its record sales and profit growth.
It’s no surprise with this strategic acquisition and record results Blackmores saw a spike in its share value. Shares in the company are currently trading at $156.91, up 8.03%.
Details of Blackmores new acquisition
IMPROMY is a consultation-based health and weight loss program, developed in collaboration with CSIRO, an Australian federal agency responsible for scientific research.
Probiotec will receive $9 million in cash upon settlement of the sale, which is expected to be November this year, subject to normal adjustments.
Probiotec’s Managing Director, Wes Stringer believes that IMPROMY is well positioned for growth under Blackmores ownership.
Blackmores record full-year results
The health supplement company reported record full-year profits with $601 million in revenue, up 9% from the previous year. And net profit after tax was $70 million, a 19% increase from the year before.
Blackmores Chief Executive Officer Richard Henfrey said that the company was focused on driving stability within the business to enable sustainable growth.
‘Our results for the year reflect this focus.
‘Revenue was a record for the Group and in the financial year we sold more product than ever in our 86-year history. The strongest growth continues to come from our businesses in Asia, which delivered record sales in June.’
Looking forward, the company is focused on delivering growth across all of its brands, particularly investment opportunities.
Blackmores stated in its full-year results that China continues to be a significant opportunity for the company.
‘In addition to our Alibaba agreement, last week we signed a strategic co-operation with NetEase Kaola,
‘Our vision for China is not limited to e-commerce sales, and we’re actively building our offline business and affirming our credibility as a leading natural health advocate’ said Mr Henfrey.
To top off the good news, the company reported a final fully-franked dividend of 155 cents per share, up 13% from the year prior.
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