News: BKL Blackmores Says Undertaking Fully Underwritten $92M Institutional Placement

May 27 (Reuters) - Blackmores Ltd (BKL) :

• UNDERTAKING A FULLY UNDERWRITTEN $92M INSTITUTIONAL PLACEMENT
• UNDERTAKING NON-UNDERWRITTEN SHARE PURCHASE PLAN OF UP TO ABOUT $25M
• UNDERLYING PROFIT REMAINS IN-LINE WITH EXPECTATIONS AND GUIDANCE PROVIDED AT 1H 20 RESULTS
• IN ADVANCED DISCUSSIONS WITH POTENTIAL BUYER FOR SALE OF SURPLUS LAND CO IS SEEKING TO SELL
• BOARD ANTICIPATES FULL-YEAR FY20 UNDERLYING NPAT OF $17 TO $21M
• PLACEMENT WILL BE CONDUCTED AT $72.50 PER NEW SHARE
• WILL COMMENCE A MEASURED ENTRY INTO INDIA IN FY21
• IMPACT OF COVID-19 IS DRIVING A MATERIAL INCREASE IN DEMAND FOR CO'S IMMUNITY PRODUCTS
• PROCEEDS FROM EQUITY RAISE TO BE USED TO ACCELERATE INVESTMENTS IN ASIA GROWTH, AMONG OTHERS
• EFFICIENCY PROGRAM TARGETS $50M OF ANNUALISED GROSS EBITDA BENEFITS BY FY23
• MARCUS BLACKMORE AND HIS RELATED ENTITIES WILL NOT PARTICIPATE IN EQUITY RAISE
• CONTINUES TO PROGRESS WITH DIVESTMENT OF NON-CORE BRANDS
• ACCESS TO SOME OVERSEAS SOURCED MATERIALS, CAPACITY CONSTRAINTS IMPACTED ABILITY TO MEET DEMAND IN SOME PRODUCTS
• OVERALL COVID-19 IMPACT EXPECTED IN-LINE WITH GUIDANCE GIVEN, WITH ABOUT $7M EBIT ADVERSE IMPACT LARGELY RELATED TO CHINA SALES
• TARGETED $50M COST EFFICIENCY PROGRAM TO ENHANCE MARGINS BY FY23