Pharmacy Daily | Wesfarmers Health reports $45m profit

THE recently formed Wesfarmers Health division, which was created when the conglomerate acquired Australian Pharmaceutical Industries last year (PD 21 Jan 2022), has seen strong growth in its wholesale business, according to the Wesfarmers Annual Report which was released on Fri.

The division also cited elevated sales of COVID-19 antiviral products amounting to over $300 million and "solid sales results for the year" via the Priceline Pharmacy network, with growth across health and beauty categories which moderated in the second half of the 2022/23 financial year.

Overall revenue for the Health businesses was $5.3 billion, with earnings of $45 million amid a swathe of merger and acquisition activity including the purchase of InstantScripts for $135 million which settled on 03 Jul.

In late Jun, Wesfarmers also entered into a Scheme Implementation Deed with SILK Laser Australia, which will complement the group's existing Clear Skincare clinics.

The past year also saw Wesfarmers increase its stake in the SiSU health station business to 60%.

As at 30 Jun 2023 the Health division included 390 Priceline Pharmacy franchise stores and 76 company-owned Priceline outlets.

There are 43 pharmacies operating under the Soul Pattinson Chemist banner, and 53 Pharmacist Advice outlets.

Wesfarmers said the Health division has a "complementary portfolio of health, wellbeing and beauty assets that is well positioned to deliver long-term growth and capitalise on health sector tailwinds".

However, near-term market conditions are expected to remain challenging, with the division actively managing the impacts of cost inflation as well as changes to the PBS and the implications of the 60-Day Dispensing policy.

The Health division continues to pursue logical expansion opportunities across digital health, medical aesthetics and pharmaceutical wholesale, according to the report.