Pharmacy Daily | API half year soars 54.5%

AUSTRALIAN Pharmaceutical Industries has released its half year results for the period ending 28 Feb, which reveal a net profit increase of 54% to $10.3 million. Overall sales for the period were $1.85 billion, with pharmacy sales revenue of $1.43 billion up 7.4% on the previous corresponding period. MD Stephen Roche said the API pharmacy division was continuing to grow solidly “despite a very competitive and dynamic regulatory environment. “The division has focused on working capital and consumer trading terms, whilst at the same time planning for the continued PBS reforms,” he said, adding that API’s alliance with Alphaharm “has continued to deliver value and positions the company to deal with competitive pressures in the growing generics market”. He also said that new formats introduced for Soul Pattinson and Pharmacist Advice, along with the API member program, had been well accepted and had “secured a strong foothold in the core pharmacy categories”. The retail division recorded comparable store sales growth in Priceline of 2% “in what has been one of the most competitive markets experienced,” Roche said. “Our significant investment in the brand through media and other mediums has paid off, with consumers recognising the value and quality offering in both our Priceline and franchised Priceline Pharmacy stores”. He confirmed that API was continuing to focus on contolled expansion of Priceline, aiming for 400 stores in 2011. The Priceline ClubCard loyalty scheme now has a member base exceeding 3.1m members, making it one of the biggest retail loyalty schemes in Australia. And API’s Revitalise supply chain consolidation program is well under way, with the first distribution centre in Melbourne close to finalising transition to an integrated retail/pharmacy operation. Roche confirmed previous guidance of an expectation of $24.6m profit for the full year, adding “we continue to ensure the company is in a sustainable, profitable position”.

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