AUSTRALIAN Pharmaceutical Industries this morning alerted investors that its half year result would be down about 9% on the previous corresponding period, with "suppressed retail conditions" persisting until late in the key Christmas trading period.
Overal sales across the Priceline Pharmacy network, including dispensary, for the financial year to date are up 2%, while like-for like front of store sales had dipped 2.4% over the same period.
"In contrast to the strong sales we experienced during 2016, consumer spending remained subdued throughout the 2017 calendar year and we did not see that change during the Christmas period," said ceo Richard VIncent.
He said API was reacting to the tougher retail environment, with a range of measures including "investments to enhance our total customer experience".
That includes in-store changes and the company's digital transformation program which is designed to enhance Priceline's Sister Club loyalty program.
"We have adjusted the business cost base while we've strengthened and streamlined our retail leadership team to drive a more responsive business in the changing consumer environment, particularly in the important beauty segment," Vincent said.
He said the company's expectations for growth in store numbers for the Priceline and Priceline Pharmacy network remain unchanged, while API's pharmacy distribution business continues to perform to expectations.
Vincent said API now expects its half year net profit after tax (NPAT) for the six months to 28 Feb to be about $26.5 million, while full year NPAT will likely be marginally above that of FY2017.
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