Pharmacy Daily | API profit surges to $43m

Australian Pharmaceutical Industries (API) yesterday reported net profit after tax of $43.1m for the 12 months ended 31 Aug, up 37.6% on the previous year. Earnings before interest and tax amounted to $74m, representing an increase of 13.7%. The company attributed the result to growth in API’s core businesses and continued financial discipline. “The sustained earnings growth is coming from strong operational execution and financial management in line with our strategic plans,” said API ceo and md Stephen Roche. “We continue to expand the Priceline Pharmacy network which means our growth strategy remains on track...our focus on the customer and financial management over many years is delivering consistent growth in our capital returns for shareholders.” He said improved cash generation, working capital management and lower debt has provided API with flexibility for future growth options. Operations increased cash returns by $15.9m on the prior year with average debt reduced by $39.3m and net financing costs down by 21.8% from $18.1m to $14.1m. Roche also emphasised that the company’s transition from a purely wholesale operation to a highly competitive retail organisation is exemplified by the strong showing of Priceline and Priceline Pharmacy stores.

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