Aussie vitamin company Blackmores not to split stock despite trading above 200 dollars

Australian vitamin and health supplement maker Blackmores Ltd has no plans to split its stock after shares recently surged passed 200 Australian dollars.

Blackmore's market capitalization has growth from 550 million Australian dollars (377.27 million U.S. dollars) to over 3 billion Australian dollars (2.06 billion U.S. dollars) over the past 12 months as export earnings grow, most notably from strong vitamin sales to China.

Blackmores chief executive Christine Holgate told Xinhua on Saturday the company has no intention to split its shares which broke through the 200 Australian dollar (137.19 U.S. dollar) barrier in late October on the announcement of a partnership with dairy producer Bega Cheese Ltd. to supply infant formula to China.

"85 percent of our shareholders are retail shareholders, mums and dads" Holgate said at the infant formula product launch on Saturday.

"Many of our shareholders have held our stock for 30 years, and just splitting the shares isn't going to change whether they continue to hold Blackmores or not."

At the close of trade on Friday, Blackmores shares had gained 5.52 Australian dollars (3.79 U.S. dollars), or 2.76 percent to 205.50 Australian dollars (140.96 U.S. dollars) despite the ASX slipping 0.34 percent for a nine out of 10 session loosing streak, its worst start to a New Year on record.

Breaking the 200 Australian dollar (137.19 U.S. dollar) barrier on the partnership's announcement had some investors concerned the 513 percent surge over the past year made the stock overpriced.

"This is way above what we've valued it at," Morningstar analyst Chris Kallos told global news agency Reuters at the time.

"This partnership is a good move on paper and looks like it diversifies revenues without putting added pressure on their manufacturing capacity, while taking advantage of the demand in China, (but) it looks expensive."

The Blackmores-Bega Cheese partnership launched their infant formula range in Sydney on Saturday, faster than anticipated to meet market demands.

Australian supermarket giants Woolworths and Wesfarmers owned Coles have restricted sales of infant formula due to significant local supply issues from high demand.

"We've very cognisant about mums making sure they can get supply of products," Holgate said, noting there is no indication of when the market will heat peak demand."

"What we've done is put a number of measures in place to help mums."

Consumers will be able to purchase Blackmore's infant formula in Australian pharmacies, via a national customer service line and e-commerce platforms. Endit