Full year net profit after tax up about 5%, lower than expected due to weak demand.
Australian Pharmaceutical Industries has just issued a revised profit guidance for the financial year ending 31 August 2017, saying trading in retail has been weaker than anticipated.
CEO and managing director Richard Vincent said while the company had forecast soft demand in the second half of the financial year, sentiment had weakened further leading to the revision of full year profit expectations.
“While we continue to see good market share results, solid growth in transactions across our network at 4% up on FY16 and the roll-out of new stores has remained on track, overall like-for-like sales has weakened due to consumers spending less per basket and on lower value items,” he said.
Vincent said API was holding its share of the available market, with significant new product launches to help stimulate demand in the coming months.
“We are in a strong market position, our balance sheet remains healthy and we are confident that we are well positioned to take advantage of any upswing in market sentiment,” Vincent added.
More details in tomorrow’s issue of Pharmacy Daily.