contents
Annual Report 2016
CHAIRMAN’S
INTRODUCTION
with 44 additional days salary paid to each employee as part
of our long-standing prot sharing program, which has always
sought to align staff remuneration with shareholder benets.
Our leadership team remuneration is also closely aligned
with shareholder value, and you’ll note the strong correlation
between our healthy protability and the executive incentives
paid as a result.
Our team is always deserving of recognition for their
hard-work, commitment to our values and enthusiasm for our
business and this year is no exception. I welcome the team
from Global Therapeutics to the Blackmores family. Since
acquiring this leading Australian herbal medicine company
in May, we’ve come to understand more about the potency
and potential for Chinese herbs as powerful medicines and
we are excited about the future prospects for their brands
Fusion Health and Oriental Botanicals.
A little over a year ago, we advised shareholders of our
challenges to meet the growing demand for our product
whilst upholding our unrivalled quality standards. To address
the supply constraints, our business has changed signicantly
with new staff, additional facilities, new supplier partnerships
and improved infrastructure. It has been one big team effort
and one that wouldn’t be possible without the stewardship of
our Executive Team and Board. I sincerely thank them for their
leadership.
It is impossible for me to note leadership without expressing
my great appreciation for our Chief Executive Ofcer, Christine
Holgate. She has received many accolades this year including
recognition as CEO of the Year. In my opinion she is deserving
of this praise as she has led our company with passion over the
past year. It’s a passion evident in our broader team and they
share my excitement about our future.
The best of health.
Marcus C. Blackmore AM
Chairman
BLACKMORES ANNUAL REPORT 2016
7
I
t has been another momentous year for Blackmores, with
continued sales and profit growth and a strong financial
performance securing us a place in the ASX 100, just over
30 years since we first listed on the Australian Securities
Exchange and 84 years since our company was founded.
I’m often asked why our business has endured through the
generations and how we focus on ensuring that we will remain
financially sound and relevant to consumers in the years to
come. Indeed ‘sustainability’ as a principle has been bantered
about in many boardrooms in recent years.
Reflecting the importance of understanding and sharing
our vision for business sustainability, you will note that our
inaugural Blackmores Sustainability Report will be available on
our website this year. In the interests of minimising our impa
ct
on the environment, the full report is online, with an abridged
version in this annual report.
Sustainability encompasses so much more than
environmental initiatives. It encompasses our commitment
to our community, our employees, our shareholders, our
governance and our investment in the future of our industry.
I am inspired by one of our international trading partne
rs,
Alibaba, who are one of the world’s biggest e-commerce
merchants. Their vision is to be a company that endures for
102 years, meaning they will span three centuries.
Our strong values and culture combined with our
rigorous approach to quality, research and innovation
will position us well for our future.
The vision we have for our business is shared by our
employees who each act as ambassadors for our brands.
Among these valued employees, one quarter hold a
healthcare qualification and more than half speak an Asian
language as their mother tongue.
The importance of Asia to our Group revenues is very
clearly highlighted by the 50 head office employees who
are currently electing to learn Mandarin. Though they’re all
realistic about the time it takes to be proficient in speaking,
reading and writing Chinese, it does indicate our employees’
commitment to understand and respect the people, culture,
and health needs of our growing number of Asian consumers.
It has been another momentous year for Blackmores, with
continued sales and profit growth and a strong financial
performance securing us a place in the ASX 100, just over
30 years since we first listed on the Australian Securities
Exchange and 84 years since our company was founded.
CHAIRMAN’S
INTRODUCTION
6
BLACK M O R E S ANNUAL R E P O R T 2 016
All of our staff members have shared in our growing profits
with 44 additional days salary paid to each employee as part
of our long-standing profit sharing program, which has always
sought to align staff remuneration with shareholder benefits.
Our leadership team remuneration is also closely aligned
with shareholder value, and you’ll note the strong correlation
between our healthy profitability and the executive incentives
paid as a result.
Our team is always deserving of recognition for their
hard-work, commitment to our values and enthusiasm for our
business and this year is no exception. I welcome the team
from Global Therapeutics to the Blackmores family. Since
acquiring this leading Australian herbal medicine company
in May, we’ve come to understand more about the potency
and potential for Chinese herbs as powerful medicines and
we are excited about the future prospects for their brands
Fusion Health and Oriental Botanicals.
A little over a year ago, we advised shareholders of our
challenges to meet the growing demand for our product
whilst upholding our unrivalled quality standards. To address
the supply constraints, our business has changed significantly
with new staff, additional facilities, new supplier partnerships
and improved infrastructure. It has been one big team effort
and one that wouldn’t be possible without the stewardship of
our Executive Team and Board. I sincerely thank them for their
leadership.
It is impossible for me to note leadership without expressing
my great appreciation for our Chief Executive Officer, Christine
Holgate. She has received many accolades this year including
recognition as CEO of the Year. In my opinion she is deserving
of this praise as she has led our company with passion over the
past year. It’s a passion evident in our broader team and they
share my excitement about our future.
The best of health.
Marcus C. Blackmore AM
Chairman
CHAIRMAN’S INTRODUCTION It has been another momentous year for Blackmores, with continued sales and profit growth and a strong financial performance securing us a place in the ASX 100, just over 30 years since we first listed on the Australian Securities Exchange and 84 years since our company was founded. BLACKMORES ANNUAL REPORT It has been another momentous year for Blackmores, with continued sales and profit growth and a strong financial performance securing us a place in the ASX 100, just over 30 years since we first listed on the Australian Securities Exchange and 84 years since our company was founded. I’m often asked why our business has endured through the generations and how we focus on ensuring that we will remain financially sound and relevant to consumers in the years to come. Indeed ‘sustainability’ as a principle has been bantered about in many boardrooms in recent years. Reflecting the importance of understanding and sharing our vision for business sustainability, you will note that our inaugural Blackmores Sustainability Report will be available on our website this year. In the interests of minimising our impact on the environment, the full report is online, with an abridged version in this annual report. Sustainability encompasses so much more than environmental initiatives. It encompasses our commitment to our community, our employees, our shareholders, our governance and our investment in the future of our industry. I am inspired by one of our international trading partners, Alibaba, who are one of the world’s biggest e-commerce merchants. Their vision is to be a company that endures for 102 years, meaning they will span three centuries. Our strong values and culture combined with our rigorous approach to quality, research and innovation will position us well for our future. The vision we have for our business is shared by our employees who each act as ambassadors for our brands. Among these valued employees, one quarter hold a healthcare qualification and more than half speak an Asian language as their mother tongue. The importance of Asia to our Group revenues is very clearly highlighted by the 50 head office employees who are currently electing to learn Mandarin. Though they’re all realistic about the time it takes to be proficient in speaking, reading and writing Chinese, it does indicate our employees’ commitment to understand and respect the people, culture, and health needs of our growing number of Asian consumers. All of our staff members have shared in our growing profits with 44 additional days salary paid to each employee as part of our long-standing profit sharing program, which has always sought to align staff remuneration with shareholder benefits. Our leadership team remuneration is also closely aligned with shareholder value, and you’ll note the strong correlation between our healthy profitability and the executive incentives paid as a result. Our team is always deserving of recognition for their hard-work, commitment to our values and enthusiasm for our business and this year is no exception. I welcome the team from Global Therapeutics to the Blackmores family. Since acquiring this leading Australian herbal medicine company in May, we’ve come to understand more about the potency and potential for Chinese herbs as powerful medicines and we are excited about the future prospects for their brands Fusion Health and Oriental Botanicals. A little over a year ago, we advised shareholders of our challenges to meet the growing demand for our product whilst upholding our unrivalled quality standards. To address the supply constraints, our business has changed significantly with new staff, additional facilities, new supplier partnerships and improved infrastructure. It has been one big team effort and one that wouldn’t be possible without the stewardship of our Executive Team and Board. I sincerely thank them for their leadership. It is impossible for me to note leadership without expressing my great appreciation for our Chief Executive Officer, Christine Holgate. She has received many accolades this year including recognition as CEO of the Year. In my opinion she is deserving of this praise as she has led our company with passion over the past year. It’s a passion evident in our broader team and they share my excitement about our future. The best of health. Marcus C. Blackmore AM Chairman