Company Analysis: Blackmores Limited

Company
FIN600 TX YYYY
NAME: STUDENT ID:

Student name – ID FIN600 TX YYYY
Assignment – Company
Executive Summary
The company chosen for review is Blackmores Limited which is engaged in the business of health
care supplements. This report talks about the meaning of the various ratio and what they indicate.
Further, the suggestions have been given for the company.
1

Student name – ID FIN600 TX YYYY
Assignment – Company
Contents
Page Number
1 Introduction 2
1.1 Background and Business
2 Company Analysis
2.1 Analysis of financial statements of the business
Current Financial performance, economic outlook
3 Ratio Analysis
3.1 Profitability ratios
3.2 Efficiency ratios
3.3 Liquidity ratios
3.4 Gearing ratios
4 Recommendations and overall assessment
5 References/Bibliography
2

Student name – ID FIN600 TX YYYY
Assignment – Company
Appendices – attached Excel Spreadsheet
3

Student name – ID FIN600 TX YYYY
Assignment – Company
1 Introduction
1.1 Background and Business
The company undertaken for review is Blackmores Limited which is an Australian Health
supplements company which was founded in the year 1930. The founder of the company was
Maurice Blackmores. The company had successfully opened its first food shop in the country of
Australia in Brisbane, Queensland. If considered today, the company is listed in the ASX 200
companies and has the market value of its share of an amount of $2 billion. The company also gives
an employment to about 843 people and also manufactures a wide variety of products. The example
of the products being manufactured include vitamins, minerals along with various health
supplements. The company operates in about 17 markets all across the Asia Pacific region of the
world. The company under review was inducted into the Queensland Business Leaders Hall of
Fame (Blackmores, 2019).
2 Company Analysis
2.1 Financial statements, Current Financial performance, economic outlook
The founder of the company was of the view that the properties of the herbs and the minerals helps
in the development of the entire system of the health care which was based upon some naturopathic
principles. His viewpoints majorly existed on the natural health, the medicines that could prevent
diseases and also the environment along with recycling that dated to the early years of 1930. It was
his view point that led to the development of many medicines that could treat different illnesses and
also help in the maximisation of health. The founder of the company Maurice was responsible for
4

Student name – ID FIN600 TX YYYY
Assignment – Company
the starting up of the various health food stores in the areas of Brisbane during the year of 1938 and
he also worked with his colleagues and friends for the purposes of establishing the college of
naturopathic facts. He also led to the establishment of many professional associations in the country
of Australia itself. It were his beliefs that still hold truth and his relevant teachings and thought
process were successfully incorporated into the various training programs of the various
practitioners concerned with the natural health.
It was then during the year of 1975 that his son Marcus took the company to greater heights and that
led the company to become a world most appreciated company in the natural health on one side
whereas it kept its core to the founding principles on the other. Till today, the company enjoys an
unmatched heritage at heart and also enjoys a holistic approach when it comes to health and the
well-being of the people. The company has remained committed when it came to the delivering of
the new and the innovative products and supply the relevant health information and these have been
passed on to the customers (Blackmores, 2019).
The company led to a decrease in the amount of sales in the country of China. This happened
majorly due to the change in the strategy which was being used and also targeted and affected the
trade in china. The net effect of this led to an increase in the amount of the sales to the Chinese
consumers which led to the growth of 8% when compared with the previous year.
The investors of the company sold off the majority of its shares when the company announced that
it would be burgeoning sales in the Chinese market and also a decrease in the sales of the company
by 11%. This would ultimately lead to the weakening of the earnings during the second half of the
year. The company made majority of the sales to the country of China in the health conscious
middle class which led the company to report double sales in the country of China (SMH, 2019).
3 Ratio Analysis
5