Blackmores: Financial Analysis and Business Overview

FINANCIAL
MANAGEMENT
2019

Blackmores
Executive Summary
The business environment is an appropriate combination of various components and
fluctuations that are going to take place in some of the other countries. Business environment
consists of all such internal and external factors that are capable of impacting the business
activities of an organization. In this report, Blackmores has been studied in an in-depth
manner. The report is structured in a manner that provides a holistic view of the company. It
initiates with the introduction of the company followed by the financial performance of the
company where it is seen that the company posts 19% rise in the NPAT. It is followed by the
economic outlook of the company where an analysis pertaining to economic, environment
and demographic has been done. The discussion then moves to the major part of the part that
is the financial analysis where the discussion is done with the aid of profitability, liquidity,
efficiency, and gearing ratios. The only concern is the gearing ratio because the company is
riding on heavy debt and hence, is highly exposed to vulnerability. As per the analysis, it is
witnessed that the profitability is average and need to perform consistently in the coming
years. Further, the liquidity of the company is strong and hence can easily discharge the
obligations. It can be commented that the year 2018 has been better for the company as
compared to the year 2017 and going by other financial factors it can be commented that an
investment in the same will help in attaining good results.
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Blackmores
Contents
1. Introduction................................................................................................................3
1.1. Background and business............................................................................................3
2. Company Analysis.......................................................................................................3
2.1. Analysis of financial statements of the business................................................................3
 Economic outlook........................................................................................................4
3. Ratio Analysis.............................................................................................................6
3.1. Profitability ratios.....................................................................................................6
3.2. Efficiency ratios.......................................................................................................7
3.3. Liquidity ratios........................................................................................................7
3.4. Gearing ratios..........................................................................................................8
Recommendation................................................................................................................9
Conclusion......................................................................................................................11
References......................................................................................................................12
Appendix.....................................................................................................................14
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Blackmores
1. Introduction
1.1. Background and business
Blackmores is a natural health company. It is one of the renowned names in its industry in
Australia. It was founded in the year 1932 by Maurice Blackmore. The company aims at the
well being of its people so as to achieve optimal health. The head office and production
facility of the company is based in Sydney’s Northern Beach. The unique blend of traditional
naturopathy and science is employed by the company. At present Blackmores operates
successfully in not less than 17 markets owing to its innovative and supreme quality natural
health products and services (Blackmores, 2018).
The company sources the best quality ingredients from across the globe for its manufacturing
process. The company offers a wide range of herbal, vitamins and mineral supplements and
other nutritional products that are rich in quality (Blackmores, 2018). The company wishes to
bridge a connection in between healthy people and a healthy planet and has ensured that
implementation of initiatives such as waste reduction practices, minimal and biodegradable
packaging and so on. In order to promote and educate people the significance of natural
health, the company has launched a Blackmores Institute in the year 2012 were not only
education on the same is imparted but also necessary research work is also done. When it
comes to natural health advice, consumers and health professionals blindly trust the company.
Blackmores is publicly listed on ASX 200 and is known as the leader in naturopathic
heritage. At present, there are around 1400 employees in the company across Asia-Pacific.
The company offers products in pure Animal Wellbeing, BioCeuticals, Australia’s leading
practitioner range; Global Therapeutics, and natural health products for pets and so on
(Blackmores, 2018).
2. Company Analysis
2.1. Analysis of financial statements of the business
Blackmores highly believes that the wellness of a living being is hidden in naturopathy. The
company believes that the human body is very much capable of healing in itself and in the
presence of right guidance. The impacts of modern living can be minimized or eliminated by
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