Why is the Blackmores (ASX:BKL) share price slumping 4% today?

A woman sits at her desk in front of her laptop and looks away feeling disappointed with today's share price falls

The Blackmores Limited (ASX: BKL) share price has been sliding today along with the rest of the market.

Shares in the vitamins and supplements company hit an intraday low of $91.05, which is 4.2% down on yesterday’s closing price, before recovering somewhat in afternoon trade.

Blackmores shares are now changing hands at $92.40 apiece, down 2.82% for the day.

Let’s investigate a little further.

What’s up with the Blackmores share price today?

There’s nothing coming out of the Blackmores camp on Friday that is impacting its share price today.

It’s obviously worth noting that the S&P/ASX 200 index (ASX: XJO) is enduring a sell-off and is down 2% to 7,179 points.

The S&P/ASX 200 Consumer Staples Index (XSJ) – of which Blackmores is a member – has slipped 1% today as well.

Investors’ concerns about inflation pressures, along with the energy crisis in the UK and Europe and the Evergrande debt scare in China appear to have plagued global equity markets this week.

Over in the US, the S&P 500 benchmark index sank 1.19% overnight while the Nasdaq Composite index slid 0.44%.

On local shores, the broad Australian index is down about 2.8% this week, whereas consumer staples are relatively flat.

So, it appears the Blackmores share price is moving in unison with the broader market sell-off today.

What else is happening with Blackmores?

There is reportedly an internal dispute between Blackmores’ key stakeholders.

According to reporting from today’s The Australian, Blackmores’ biggest shareholder, Marcus Blackmore – who owns just under 20% of the company’s shares – is threatening to vote against the election of the board’s chairperson, Anne Templeman-Jones.

Blackmore is unhappy with how the board is progressing the company. He is equally dissatisfied with Templeman-Jones’ decision to reject the nomination of former Pharmacy Guild president George Tambassis to the board, according to The Australian report.

Blackmore wants to see more health care and pharmaceutical representation on the board, fearing the board “is becoming overrun by governance”.

About 75% of Blackmores’ business in Australia is done through pharmacies.

We might hear more about this in the lead-up to the annual general meeting on 27 October.

Blackmores share price snapshot

The Blackmores share price has climbed 23% this year to date, bringing its gains over the past 12 months to 46%.

That’s well ahead of the broader index which has gained about 22% over the past year.

The post Why is the Blackmores (ASX:BKL) share price slumping 4% today? appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions 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. 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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