Chris Stott, CIO at Wilson Asset Management rates Blackmores as one of their “high conviction” calls. Stott says Blackmores “are in a real sweet spot at the moment” they’ve “got a fast growing Asian business which represents around 20-30% of group profits and a potential expansion into China over the next 5 years. Their major competitor, Swiss here in Australia has taken their foot off the throttle in terms of aggressive marketing. They’ve seeded some market share back to Blackmores. Our channel checks by visiting Chemist Warehouse stores which are their largest customer suggest that demand remains quite strong with “out of stocks” in quite a few lines. They’ve recently announced to the stock exchange that they’ve added a third shift to the main production facility down at Warriewood, so they’re going to operate 24 hours a day to meet these high demand levels.” (Source: Interview with Morgans)
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