API reports $23.3m net loss
October 27, 2011
AUSTRALIAN Pharmaceutical
Industries this morning released its
results for the year to 31 Aug, with
an overall loss of $23.3 million.
The after-tax result was impacted
by the previously announced $50
million impairment over its
financial guarantee program for
pharmacists (PD 20 Apr).
Total revenue for the year was
$3.43 billion, down about 7.5% on
the previous period, but despite
the difficult conditions Priceline
saw growth of 2.3%.
“We remain confident in our
investment in Priceline and the
opportunities for Priceline
Pharmacies,” said ceo Stephen
Roche, while the pharmacy division
had remained stable during the
second half of the year after the hit
from Pfizer’s move to direct
distribution.
“We do not anticipate a repetition
in FY12 of the conditions which saw
a total estimated loss of 15% of
revenue from the wholesale
sector,” Roche said.
Interestingly, he said that the
impact of the termination of API’s
trading relationship with Pharmacy
Alliance and the IPAG groups had
been “significantly overstated,”
with API retaining about 50% of
former PAL and IPAG members.
API has also invested about $3m
in a project to develop online
shopping for Priceline, “and we
believe that we’re significantly
more advanced than any of our
competitors in launching this offer”.
About 100 pharmacists are in
talks with API over new Priceline
stores, but the rollout has slowed
“until such time as banking
sentiment towards the retail sector
changes,” Roche said.
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