Essays on Investigation of Blackmores Limited Earnings Announcement in the Equity Market Case Study

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The paper 'Investigation of Blackmores Limited Earnings Announcement in the Equity Market" is a great example of a finance and accounting case study.   Blackmores Limited is one of the major companies in Australia dealing with natural health products. The company has been at the forefront of campaigning for the well-being of individuals across the world. The company is practically involved in the production and provision of natural health products besides administering consultation services in respect to a natural healthy lifestyle. The company has an excellent team of health practitioners who provide satisfactory services to individuals across the world.

The company has a number of products for treating a variety of complications such as eye problems, digestive malfunction, children’ s health issues, brain complications, joint & muscle pains among others. Blackmores Limited has branches in China, Hong Kong, Korea, Malaysia, Kazakhstan, Taiwan, Thailand, New Zealand and Singapore that supplies its health products and it is still in the verge of growth due to increasing demand for their health products as a result of: - The high number of people with obesity, heart-related diseases and high blood pressure who want to control further complications The increasing creation of health awareness campaigns throughout the world. The individuals’ sudden over-reliance on fast foods which to some extend hinder proper development and growth of children The increased number of people who are advancing in age and still want to be energized so as to remain active in their public and social lives 2.0The company’ s earnings announcement The company has grown to be among the leading natural health provider in Australia due to its high-quality health products.

Following its consistency in performance, the company was listed in Australian Securities Exchange Market and to date controls close to 20% of the Australian market share. The company has a good history in terms of financial growth with its reported earnings per share increasing each and every financial year.

On analyzing previously announced financial results for the last few financial years, the company reported a very high value in terms of earnings per share in the year 2007, which hit 14.6%. The rate remained consistently high until the year 2013 when it dropped to 10.2% The financial results reported in the subsequent years, saw an upward trend in revenue generated while the earnings per share remain constant. The market analysts had predicted changes during the subsequent financial results reporting.

They had hopes of Blackmore Ltd announcing an increase in earnings per share during the half-year financial results of 2014. Therefore, when the company announced its half-year financial results of 2014 on 26th February 2015, which had reported the following Revenue realized was $206.4m having increased by 22% in comparison to the previous corresponding period. The company’ s management had announced a significant increase in interim dividends to be paid out, that is, 0.68 compared to the previous 0.31 The working capital increased by 118% to $29m when compared to the amount reported during the last corresponding period. The company reported an increase in its net income after tax from $8.56m from the previous corresponding period to $18.6m

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