API reports $12.9m profit
April 18, 2013
AUSTRALIAN Pharmaceutical
Industries this morning reported
its results for the first half of the
financial year, with a statutory net
profit of $12.9m.
That was down from the prior
corresponding period result of
$18.3m - but that had included a
$14.5m insurance payout, with the
underlying result up 6.8%.
CEO Stephen Roche said the
company’s pharmacy division was
“proving resilient in the face of
ongoing sector reform.
“Our operational performance
continues to improve and our
business strategy is delivering.
“The Priceline Pharmacy
proposition remains central to
our future growth,” he said, with
further expansion expected “as
the impact of PBS reform makes
a compelling proposition for
independent pharmacists looking
for alternative profit drivers”.
Total retail sales for Priceline,
excluding dispensary, were up 3.3%
but like for like store sales fell 0.6%
with an 0.8% growth in gross profit
margin.
On the wholesale side Roche said
API’s strategy of restructuring its
distribution model “and working
with our customers to reduce
discounts to pharmacists in a
structured, timely manner” was
working, with underlying sales
growth of 6.9%.
However he warned that if the
government wants the next round
of reforms to deliver further savings
while maintaining equity of access
to PBS medicines “then it must
include those responsible for their
distribution in the next round of
negotiations”.
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