PHARMACY wholesaler, Australian Pharmaceutical Industries (API) has reported a $7.9 million post tax loss for the 2020 Financial Year, with its Priceline Pharmacy banner group seeing gross profit fall by 14.3% due to the impacts of COVID-19.
API revealed underlying earnings before interest and tax, was $56.3 million for the year to 31 Aug, down 40.1%, while total group revenue was $4 billion, up 0.2%, despite COVID lockdowns.
Announcing its full year results to the Australian Securities Exchange (ASX) API revealed Priceline's total network sales for the year to 31 Aug were $2 billion - down 5.2% on 2019, with front of shop sales slipping by almost 6%, while dispensary sales declined by 2.6% for the same period.
API CEO, Richard Vincent, said the dip in profits reflected a move away from high margin categories including cosmetics and cold and flu medications as a result of COVID-19.
"This result reflects the strength of the Priceline Pharmacy brand, given that 22 of our non-pharmacy stores were closed during the mandated Victorian closures of non-essential retail," he said.
"Also those Priceline Pharmacy stores located in the nation's CBDs or in non-grocery sections of major shopping centres saw sharp drop-offs in foot traffic during the pandemic's worst periods."
While COVID hit Priceline, Vincent told the market that API's pharmacy distribution business had experienced a strong second half of FY20, with total revenue for the division up 6.1% on the prior corresponding period, winning new business during the year.
"We recently won the largest pharmacy banner in Western Australia, the 777 Group, with over 60 pharmacies, which will benefit us in FY21," he said.
Vincent added that the division had achieved efficiencies by closing distribution centres in Canberra and Newcastle, consolidating their volumes in its Camellia, NSW, operation.
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