The chief executive of vitamins group Blackmores says people will keep spending on vitamins and health supplements they consider crucial, but are becoming more discerning about when and where to buy as cost-of-living pressures rise.
Alastair Symington says there’s a noticeable shift in the different channels from which vitamins purchases are being made, with value-oriented consumers hunting for special deals and the lowest price.
“We are seeing a little bit of shifting out of the traditional pharmacy,” he said.
Mr Symington said in the first weeks of February, the volume of sales across the board hadn’t waned, but Blackmores was closely monitoring buying patterns, anticipating that some consumers could start buying fewer items and stick to core purchases.
“We haven’t seen volumes coming down yet,” he said.
Blackmores shares dropped 6.7 percent to $79.06 by late afternoon on the ASX on Thursday after a subdued first-half profit. The group generated net profit after tax of $25.5 million for the six months ended December 31, down 1.4 percent from a year earlier. Revenues fell 1.6 percent to $338 million.
The share price had rallied in the previous four months, gaining 35 percent from $63.71 in mid-October.
Blackmores shares hit $200 in 2016 when the “clean and green” status of Australian vitamin companies fuelled an extraordinary jump in demand from consumers in China, and triggered a buyout of Australian rival Swisse by China-based Health & Happiness.