Blackmores forecasting record profit

Complementary medicines maker Blackmores says it's on track for a record full year profit, thanks to strong demand in Australia and Asia.

Vitamin and herbal supplements maker Blackmores is forecasting a record full year profit, with demand for complementary medicine immune from an economic slowdown.

Chief executive Christine Holgate says the business is weathering waning consumer sentiment in Australia.

"I could never say it's recession proof, but what I can say is it's proven not to be as impacted by discretionary expenditure movements," she told AAP.

"People care about their health."

Blackmores made a net profit of $12 million during the March quarter, up 125 per cent from the same period in 2014.

It made a profit of $31 million during the financial year so far, with sales growth in Australia up by more than a third.

If those earnings trends continued, Blackmores is on track for a record full year profit of about $43 million, Ms Holgate said.

Strong demand in Malaysia, Singapore, China, Hong Kong and Korea helped underpin a 42 per cent jump in sales to almost $120 million during the March quarter.

Thailand, however, continued to face market challenges.

Ms Holgate said consumers in Asia were increasingly using Blackmores to complement traditional eastern medicine.

"I'm sure that many Chinese people continue to take traditional Chinese medicine but we're, in a way, a bit of a westernised version of that," she said.

A weaker Australian dollar had boosted profitability and helped Blackmores benefit from in-bound tourism from China.

Blackmores shares rose 20 cents to $59.65.


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Source: AAP


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