API core strategy focus
December 7, 2015
Australian Pharmaceutical
Industries expects to sustain
its significant improvements in
earnings performance (PD 23 Oct)
through the implementation of
its core strategies and supporting
initiatives, the company said in its
annual report on Fri.
The positive outlook is subject
to a stable economic climate and
level of consumer demand as well
as a stable regulatory environment
including the Pharmaceutical
Benefits Scheme (PBS), the
directors’ report states.
The company intends to capitalise
on its strengths in the health and
beauty retail market especially via
the Priceline Pharmacy Franchise,
transitioning from company owned
Priceline stores to Franchise owned
Priceline Pharmacies.
Priceline Sister Club loyalty
program growth is planned with
increased customer engagement
through the website and social
media channels, the company said.
The other main strategy the
company said it will pursue is
the optimisation of its national
community pharmacy wholesale
distribution business, building on
the current merchandising strategy
and maintaining earnings margins.
Part of this strategy focuses on
investment in supply chain an
information technology platforms
to drive efficient and cost-effective
operating cost structures.
The report identified potential
challenges to future success as
ongoing government reforms to
the PBS in the pharmacy sector and
macro-economic factors that may
contribute to volatile retail sales
and increasing cost pressures in key
areas such as labour.
MEANWHILE the report also
details the salary packages of the
company’s top executives, with
managing director and ceo Stephen
Roche receiving a total package of
$1.9 million for the year to 31 Aug.
That was a huge jump on the
$1.074 million for the previous
twelve months, with Roche
receiving a cash short term
incentive of almost $500,000 in
2014/15 plus another $400,000 in
share-based payments.
Group gm business development
and operations, Richard Vincent
took home $845,181 while chief
financial officer Peter Mendo,
who was appointed in Jan 2015,
received $364,890 during the year.
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