Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Pharmacybrands boosts 1H profit 52% on 2011 acquisitions

Pharmacybrands boosts 1H profit 52%, bolstered by 2011 Radius acquisition

By Paul McBeth

Nov. 28 (BusinessDesk) - Pharmacybrands, the retail pharmacy and medical centre company, lifted first-half profit 52 percent on little-changed sales with the bottom line bolstered by a full six-month contribution from Radius Pharmacy and Radius Medical, acquired in 2011.

Net profit rose to $6.2 million, or 5.11 cents per share, in the six months ended Sept. 30, from $4.1 million, or 3.85 cents, a year earlier, the Auckland-based company said in a statement. Earnings were eroded by a $1.1 million charge from write-downs and acquisition costs, it said. Sales inched up 0.1 percent to $54.2 million.

"In the current six months we have also seen cost savings due to central office consolidation following last year's Radius acquisition," the company said. "The strength of our pharmacy franchise group remains a big focus and we have developed further services to assist franchisee pharmacy revenue growth."

Shareholders agreed to a dividend reinvestment plan, which would let them forgo a cash return in favour of receiving more shares, to let majority shareholders Cape Healthcare and LPL Trustee participate without breaching Takeovers Code requirements.

Cape Healthcare and LPL Trustee each hold a 30.4 percent stake in Pharmacybrands and based on the company paying a similar dividend over the next five years, could potentially increase their respective stakes to 35.1 percent.

The dominant shareholders came out of a 2009 deal when NZX-listed Life Pharmacy, whose brands included Life Pharmacy, Life Metro and Care Chemist, made a $20 million all-scrip offer for Pharmacybrands, the country's then-biggest retail pharmacy group with the Amcal and Unichem brands.

Pharmacybrands' board declared a first-half dividend of 2 cents per share.

The stock rose 2.6 percent to $1.18 yesterday, and has climbed 46 percent this year. That values the company at $145.3 million.

Chief executive Alan Wham said the company has been investing in information technology infrastructure to consolidate its e-commerce platforms, and plans to target customers based on their purchasing history.

"This will allow the company to increase the electronic component of its marketing mix over time," he said.

The retail trading environment is still tough, and same-store sales edged lower in the period, Wham said.

"We expect to see the focus placed on cost control to flow through in the form of savings in the second half," he said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

The Future: Thirty Year Infrastructure Plan Released

The Thirty Year New Zealand Infrastructure Plan 2015 sets out New Zealand’s response to the infrastructure challenges we will face over the next three decades, Finance Minister Bill English says. More>>

ALSO:

Shopping: Online GST Discussion Document

GST: Cross-border services, intangibles and goods contains proposals to require overseas suppliers to register and return GST when they sell services (including online products such as e-books, music and videos) to New Zealand consumers. It also outlines the way forward for improving the collection of GST on all goods, including low-value imported goods. More>>

ALSO:

Keith Rankin: Auckland Slowdown?

Has the Auckland housing market turned? I went to a neighbourhood auction yesterday. Solid large 1950s' house on 1,000 square metres of land, sunny section, view over city from front of house, handy to train and to the expanding New Lynn retail and commercial hub. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news