TERRY White Group (TWG), parent company of Terry White Chemists and Chemplus, has flagged further expansion of its fast-growing network, with md Anthony White saying the next year would be "transformational" for the company.
Reporting the group's $1,.84 million net profit after tax for the year to 30 Jun yesterday, White said "we expect the current consolidation in the industry to continue in the short to medium term and this will present potential future opportunities for the group.
"We are well placed and have a strong balance sheet to support further planned mergers with like-minded pharmacies to increase our market share and competitiveness, to ultimately achieve enhanced financial performance and a strengthened market position".
White said the group had enjoyed a 47% increase in revenue to $70.51 million with net operating cash inflow up by 116 % to $7.15m.
It also declared a final dividend of five cents per share, resulting in eight cents per share for the year, fully franked.
White said the acquisition of the Chemplus pharmacy network last year (PD 28 May 15) had been earnings accretive and delivered significant benefits to the group during the period.
The recently announced merger with Chemmart (PD 04 Aug) was "unprecedented in the Australian pharmacy industry and will deliver significant scale benefits to our pharmacy owners and their customers," White added.
"Our strategy is well defined and is built upon offering a strong, sustainable business model for our pharmacy owners, while continuing to increase our national footprint to deliver scale benefits and margin growth across the group," he said.
"In recent years, we have invested significantly in developing a highly sophisticated retail model to provide our pharmacy owners with a solid, diversified revenue stream to help offset ongoing PBS reforms.
"This investment, combined with our Value Health Strategy has delivered an above-market increase in like-for-like retail sales, which comprise more than half of all network sales."
White confirmed the TWG vision was to become "Australia's strongest retail pharmacy network".
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