Business Description:
Blackmores Limited (BKL) is a distributor of branded vitamins and supplements in Australia and Southeast Asia at the premium end of the natural healthcare market. Products are distributed primarily through retail pharmacies, supermarkets, as well as via health food stores and professional outlets.

Strategy Analysis:
Organic growth is driven by a focus on the brand, product quality and innovation. Management has established a trusting relationship between itself and key stakeholders. Marketing aims to engage and educate customers with personalised content. The quality offering means the company charges a premium price for its products and avoids margin erosion through not participating in discount wars. Ongoing research and development on areas where health awareness is high, such as cardiovascular health, infants and arthritis, constantly refresh the BKL range. Offshore diversification is ongoing, although still represents a small part of the business. The primary focus of the company is on its Australian operations. Blackmores produced its Appendix 4E. Revenue was up 9.0% to 235,267m, profit after tax attributable to members was 27,305m up 12.4%. The final dividend will be paid on 15 September 2011, amounting to 80 cents. Total dividends for the year were 124 cents. The record date for the dividends is 1 September 2011 and the payment date is 15 September 2011. NTA per security was $4.43.