Singles Day slump for McPhersons
One of the biggest decliners on the ASX on Tuesday was McPhersons. The small-cap health & wellbeing supplier slumped 35% after it withdrew its FY21 outlook following softer than expected sales on the annual Singles Day event in China.
McPhersons' key China joint venture partner Access Brands Management provided feedback that its significant November 11 event, the largest online trading event in the world, was below expectation. An excess of Dr LeWinn’s beauty products leftover from Singles Day forced the home and personal care conglomerate to slash its first-half profit forecast by 36 per cent from between $10.2 million and $11 million down to between $6.5 million and $7.5 million. McPherson's reported first-half sales of $8.5 million in 2019-20.
McPhersons also announced that the acquisition of Global Therapeutics settled on 30 November 2020, marking the establishment of the McPherson’s Health and Wellness Division. Acquiring several established brands, including Fusion Health and Oriental Botanicals will see McPherson’s boost its go to market capabilities with a new team of 41 employees along with an established product innovation pipeline for the Vitamins and Dietary Supplements category.
McPherson’s Chief Executive Officer and Managing Director, Mr Laurence McAllister, said: “With our underlying domestic performance healthy and Global Therapeutics now under the McPherson’s banner, our efforts are focused on integration and fostering further growth in new and existing channels so we can win in the $17 billion Health, Wellness and Beauty market.