Morningstar sees Blackmores outlook weighed down by macroeconomic challenges

Blackmores

19/08/2022 24:04

** Analysts at Morningstar say health supplement
manufacturer Blackmores  BKL.AX  has been lagging in terms of
fiscal 2024 targets on the back of challenging macroeconomic
market conditions
    ** Morningstar says co's fiscal 2022 underlying EBIT of A$57
million ($39.39 million) was 6% below the brokerage's estimates
of A$60 million as second-half sales in Australia disappointed 
    ** Brokerage suspects an environment of wavering consumer
sentiment given higher inflation and interest rates weighing on
demand for BKL's products  
    ** Notes that management stopped short of reiterating prior
revenue guidance of A$850 million and EBIT margin in the
mid-teens by fiscal 2024
    ** Morningstar lowers revenue forecasts on Blackmores for
fiscal years 2023 to 2026 by an average of 4%, and EBIT
forecasts over the next two years by an average of 14%
    ** Two of nine analysts rate the stock "buy", three "hold",
and four "sell" or lower; their median PT is A$77.69 - Refinitiv
data
    ** BKL down 19.8% so far this year

($1 = 1.4470 Australian dollars)

 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))