The Blackmores Limited (ASX: BKL) share price just wrapped up an impressive month of trading. Shares in the Aussie supplements company are up 35.8% in the past month and sitting at a new 52-week high of $99.80 per share.
The significant gains came late in the month following Blackmore’s results for the year ended 30 June 2021 (FY21).
Blackmores share price surges 35% in August to 52-week high
From Monday 2 August to Monday 23 August, shares in the natural health company climbed 4.1% higher. That’s not bad, but the real gains were yet to come.
Blackmores reported its full-year results on August 26. The update was punctuated by a 51.7% surge in underlying net profit after tax (NPAT) to $25.4 million. That came after Blackmores’ revenue increased by 1.3% on FY20 to $575.9 million despite a 14.0% decline in its Australian segment revenue.
The Blackmores share price initially edged lower following the result before rocketing through to the end of August. The group also announced a 42 cents per share, fully franked dividend for FY21.
Blackmores said it remains on track to achieve its strategic and financial objectives by FY24 as planned. The improved earnings profile, including strong China sales at a time of heightened trade tensions, was a particular positive.
While shares in A2 Milk Company Ltd (ASX: A2M) and Treasury Wine Estates Ltd (ASX: TWE) have suffered due to Chinese restrictions, Blackmores reported a 17.7% increase in its China segment revenue for the year.
Positively, Blackmores said the outlook for its international and China segments remain positive with significant momentum in the early part of FY22.
The Blackmores share price ultimately surged in the days immediately before and after the results’ release. From Monday 23 August through to Tuesday’s close, shares in the supplements group rocketed 30.5% higher.
That means the group’s shares climbed 35.8% higher in August and are now up 65.4% in the last 12 months.
The post The Blackmores (ASX:BKL) share price surged 35% in August to a 52-week high. Here’s why. appeared first on The Motley Fool Australia.
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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Treasury Wine Estates Limited. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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