Blackmores chief executive Henfrey resigns
Lex Hall | 26 Feb 2019Text size |
Health supplement company Blackmores has given no reason for the sudden departure of its chief executive Richard Henfrey, who has resigned after 18 months in the job.
Henfrey, who has been with the company in a variety of executive roles since April 2009, will remain in the position while the board searches for a new CEO.
He has been in the role since August 2017, when he took over from Christine Holgate.
The company did not state a reason for his resignation.
Blackmores shares hit an 18-month low last week after the vitamin maker told investors not to expect an increase in sales to China.
Blackmore shares were down 3.1 per cent, or $3.01, to $92.18 at 11.20am Sydney time.
Morningstar downgraded its fair value estimate for Blackmores in the wake of the company's first-half result.
Previously at $135, the narrow-moat stock now carries a fair value estimate of $105, a fall of 22 per cent. The stock now screens as marginally undervalued.
The company posted a record first-half revenue of $319 million – a rise of 11 per cent on the previous corresponding period.
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Revenue in Australia and New Zealand grew 19 per cent on the prior corresponding period.
The company also reported strong sales in Asian markets. Korea rose 67 per cent, Taiwan 150 per cent and Hong Kong 39 per cent.
However, Henfrey said that despite continued investment in advertising and promotion, the dent in China sales had taken a toll.
"Due to this planned investment in the period and a softening in China growth, there has been a short-term impact on profit growth."
The company said it was conducting a review of its investment approach in China and the impact of "channel shifts", or more Australian retailers directly directing the China export trade.
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Lex Hall is senior editor for Morningstar Australia
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