AUSTRALIAN Pharmaceutical Industries yesterday halved its profit growth expectations, saying it now expects its results for the 12 months to 31 Aug to be up 5% on the previous financial year (PD breaking news yesterday).
Previously the company had flagged a 10% uplift, but now cites a "further decline in consumer sentiment" in recent months.
"While we continue to see good market share results, solid growth in transactions across our network at 4% up on FY16 and the roll-out of new stores has remained on track, overall like-for-like sales has weakened due to consumers spending less per basket and on lower value items," said ceo Richard Vincent, adding: "we are experiencing similar consumer sentiment as reported by other retailers over recent weeks".
However despite the challenging conditions Vincent said API was holding market share, with several significant new product launches set to stimulate demand across the coming months.
The API ceo also said the company would build on the "newly enhanced Sister Club loyalty program to further personalise the shopping experience".
"We are in a strong market position, our balance sheet remains healthy, and we are confident that we are well positioned to take advantage of any upswing in consumer sentiment," he added.
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