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

 

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news