AUSTRALIAN Pharmaceutical Industries says despite fragile consumer confidence it continues to expect its full year profit after tax to increase by 10% this year.
The company yesterday declared a fully franked dividend of 3.5c per share after recording a first half net profit after tax of $29.1 million - an underlying increase of 15% year on year (PD breaking news).
The strong performance was achieved through organic growth in the Priceline Pharmacy network (see page 3) as well as increased efficiencies in the pharmacy distribution business, according to ceo Richard Vincent.
Within Priceline, total sales rose by 7.2% including dispensary, while comparable store sales increased 0.4% on the previous corresponding period.
"We continue to lead the sector in bringing a unique, new and exclusive product offering to market across our categories," Vincent said, citing the example of haircare where API's market share grew 8.4% over the last year.
API's pharmacy distribution revenues increased by 18% mainly reflecting the impact of the new high-value hepatitis C medicines.
Underlying growth was 5.9%, with Vincent confirming the Jun opening of a new $5 million distribution centre in Perth.
"This will result in more timely and efficient stock management for both our independent pharmacy customers and our Priceline Pharmacy franchise partners."
Vincent confirmed API remains active in the Review of Pharmacy Remuneration and Regulation through its membership of the National Pharmaceutical Services Association, "and is confident of a collaborative outcome that is sustainable for the industry".
He also said the company was not significantly concerned about the arrival of Amazon (PD yesterday), saying health and beauty had not been a key growth driver for the American online giant.
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