AUSTRALIAN Pharmaceutical Industries this morning released its financial results for the year to 31 Aug, with a healthy 18% increase in underlying net profit after tax to $51.4 million.
Total revenue jumped 18.1% to $3.8 billion, net debt declined and the board declared a fully franked final dividend of 3.5c per share.
"Due to the ongoing strength of the operational results and balance sheet position, directors have determined to move towards a 60% payout ratio in the future," according to an API statement.
Outgoing ceo Stephen Roche said the increased profits, low debt and improved working capital position "reinforces the strength of company direction, management capability to execute strategy and now provides flexibility for the company in its future development".
He said despite the major industry reforms API has built one of Australia's leading brands and successfully maintained its pharmacy distribution business.
Roche highlighted the growth of the Priceline Pharmacy network, which now comprises 442 stores.
Overall retail sales for the year rose 7.6% to $1.15 billion.
Including dispensary activity overall sales rose 11.7%, with Roche saying this was driven by attracting new franchise partners and lifting comparable store sales.
"We're continuing to take market share in the key categories of colour cosmetics, skincare, over-the-counter health and prescriptions..we have an enviable suite of marketing assets that are driving brand awareness," he said.
The new high-value Hepatitis C treatments saw API's pharmacy distribution revenues jump 11.2%.
Taking this into account underlying growth was 4.8%, with Roche saying API's market position had remained steady and consistent, reflecting its strong offer to independent pharmacists via the Soul Pattinson, Pharmacist Advice and Club Premium programs.
Roche said API expects to open another 20 Priceline Pharmacy stores over the coming year.
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