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


Green Cross Health boosts FY profit 14%, eyes expansion

Green Cross Health boosts annual profit 14%, eyes more acquisitions

By Suze Metherell

May. 27 (BusinessDesk) - Green Cross Health, which changed its name from Pharmacy Brands earlier this year as it expands into the primary health sector, boosted annual profit 14 percent as its new pharmacy and medical acquisitions came on stream.

Profit rose to $18.8 million in the year ended March 31, of which non-controlling interests were entitled to $3.8 million, from $16.6 million a year earlier, the Auckland-based company said in a statement. Sales rose 3.8 percent to $258 million, outpacing a 1.2 percent lift in the cost of sales to $146 million.

Prior to the name change in March, it had largely been seen as a retail pharmacy operating the Unichem, Amcal, Life Pharmacy, Radius and Care Chemist brands and running 28 medical centres. Green Cross Health is chasing growth through acquisitions in the primary healthcare sector, and bought a 50 percent share of Total Care Health Services in March, its first expansion into community healthcare. The company has consolidated its five pharmacy brands down to Life Pharmacy and Unichem, and relaunched its reward programme, Living Rewards, which it said it wants to expand across all business units.

"We intend to invest in further acquisition opportunities in this sector," Peter Merton, chairman of the group said of the Total Care Health acquisition. "In time there will be opportunities for synergy across our pharmacy, medical and community health businesses."

Sales at its pharmacies rose to $223.9 million from $221.7 million a year earlier. Medical centre sales nearly doubled to $9.5 million from $5.7 million and income from services provided to stores and medical centres rose to $24.5 million from $21 million.

"Our profit growth has been achieved through improved performance of all business units together with contributions from new pharmacy and medical acquisitions," Merton said. "The contribution to the group of our medical business is now substantial. We are confident that the platform we have established will create further opportunities for growth."

The board declared a final dividend of 3.5 cents per share, payable on June 23 with a record date of June 11, taking the annual dividend to 7 cents per share, up from 5 cents a year earlier.

Shares in the NZX-listed healthcare group rose 1.5 percent to $1.35, and have advanced 6.4 percent this year, just beating the NZX All Index's 6 percent gain over the same period.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news