WESFARMERS has today reported strong growth in revenue across its Health division and its Australian Pharmaceutical Industries (API) subsidiary, despite a significant reduction in COVID-19 anti-viral product sales.
In its group-wide full-year financial statement today, the division reported a 5.9% revenue increase to $5.62 million, with earnings for the year up 11% to $50 million.
Sales growth across the Priceline retail chain was driven largely by steady expansion of the physical store network, along with promotional initiatives, growth in online sales and net acquisition of new in-store customers.
Highlights for the year included the creation of a new digital health business unit to develop integrated healthcare experiences for customers, including leveraging OneDigital to broaden access to a wider range of brands for customers of the OnePass program.
This new digital health business unit completed a $142 million acquisition of InstantScripts in Jul 2023, which continued to perform strongly with a 16% increase in transactions from the year prior.
Further acquisitions included SILK Laser Australia, which is being integrated into Clear Skincare to create a larger presence in the MediAesthetics sector.
Sales for the Clear Skincare brand declined due to cost-of-living pressures seeing customers opt for cheaper brands, while the company also incurred costs from the closure of 17 unprofitable clinics.
The second half of the year also saw Priceline reduce prices on a range of over-the-counter health and beauty products to make access more affordable.
The division "continued to invest in transformation activities and integrate recent acquisitions, while focusing on opportunities to accelerate growth and improve returns", said Managing Director of Wesfarmers Limited, Rob Scott, said.
Scott added the company's outlook was strong as progress on the 'Accelerate' transformation program continues to strengthen its competitive positioning.
"This includes continued investment to reinvigorate the Priceline offer, expand the franchise store network, transform digital and e-commerce, explore new formats, improve the wholesale proposition, optimise the supply chain and leverage SILK's capabilities to improve the performance of Clear Skincare," he said.
Elsewhere, the company made progress on the construction of its new fully-automated fulfilment centre in Brisbane and a new distribution centre in Cairns. ML
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