Result includes financing costs of Sigma Healthcare share purchase.
Australian Pharmaceutical Industries has just released its financial results for the six months to 28 February, with net profit after tax up 0.2% to $25.0 million.
The company’s total revenue was $1.98 billion for the period, after “adjusting out” the impact of Hepatitis C medicines and PBS reforms. CEO Richard Vincent said the business had a solid performance, with Priceline Pharmacy returning to positive like-for-like sales growth and expansion of the company’s Consumer Brands business.
“API’s financial position remains strong and has allowed us to make an investment in Sigma Healthcare, acquire Clear Skincare and provide additional inventory to capitalise on sales opportunities during the half,” Vincent said.
Priceline Pharmacy total network sales rose slightly to $1.1 billion, with Vincent saying the business retained market share despite increased competition in the health and beauty market. The Sister Club loyalty program continued to invest in exclusive offers and promotions, and helped deliver a growth in basket size. The Priceline store network grew to 479, but API confirmed it would continue its policy of closing stores where landlords persist with unrealistic rental demands.
Pharmacy Distribution delivered a “creditable result,” generating strong and predictable cash flows, while new independent pharmacy offers through Soul Pattinson, Pharmacist Advice and Club Premium had delivered renewed member growth. Overall API now has more than 1,400 members in its retail pharmacy programs, Vincent confirmed.
The company said it was continuing to review its 12.5% shareholding in Sigma Healthcare, after discussions ceased last month in relation to the “highly synergistic merger proposal”.
More details in tomorrow’s issue of Pharmacy Daily.