Dropped in Amazon there, nice. Wouldn't Amazon buy vitamins wholesale to sell on to Aussie consumers, like say, brands they already know and trust? Blackmores doesn't have a direct retail presense here LadyinRed, they wholesale to retailers. Amazon would be eating Chemist Warehouse's lunch if they set up a discount vitamin department, not Blackmores which they would have to stock to compete.
I think it is a fair call there will be more discounting if we are to believe the Aussie consumer will weaker over the next few years due to debt levels and low wage growth. However, you are buying this stock to leverage the growth going on in Asia, and the established Aus business. I don't think it will be hard for the company the maintain the underylying Aussie business after the deflation of the Diagou trade, which has mostly flowed through now.
Honestly, in terms of the discounting, it has been happening for a long time. Every other week for years vitamins are 1/2 price at supermarkets and chemists. It is a product that is marked up to then discount like clothing.
The dividend may be reduced to pay down the debt which spiked a bit, not a bad thing for shareholders in the medium to long term. Probably unlikely though given it was already reduced inline with the decreased earning this FY.
Marcus Blackmore is the chairman, and I don't think he has managed the business day to day for years.
'$40 for 400 fish oil capsules?! No thanks.'
'hmm $20 now, that's half price and I guess I could use some omega 3.'
BKL Price at posting:
$88.57 Sentiment: Hold Disclosure: Held
