API delivers strong 2012
October 25, 2012
AUSTRALIAN Pharmaceutical
Industries is riding high after the
release of its 2012 financial year
results which showed improved net
profit and operational performance
for the company.
Speaking at the release of the
results, API’s CEO Stephen Roche
said they reflect “solid performances
by both the Priceline and pharmacy
distribution businesses”.
“We continue to see the benefits of
good management of our pharmacy
business by working with our
customers to manage the ongoing
impact of PBS reforms,” he said.
“As a consequence we have seen our
second half revenue performance
increase 1.8% on the first half.
“In addition, the second half of the
year has seen significant acceleration
in the growth of our Priceline
network which increased by a net 20
stores during the year,” he added.
The 2012 results saw the
company clock up net revenue of
$30.3 million, an impressive result
following 2011’s loss of $23.3m.
Priceline was a top performer for
API during 2012, with its stores
delivering front-of-store retail sales
growth of 3.5% year-on-year and
comparable store sales growth of 2.3%.
“Our strategy of offering women
an unrivalled, competitively priced
choice of health and beauty products
in an attractive environment
continues to deliver superior sales
results,” Roche said.
“Our Sister Club loyalty program
has now topped 3.9m members
who typically spend 50% more per
basket than non-members
shopping at Priceline,” he added.
Roche also confirmed that the
company is currently in talks with
20 pharmacists interested in joining
the Priceline Pharmacy network.
“The next two to three years will
see pharmacists experience an
accelerating decline in PBS income
and competition from the
supermarkets and discounters will
only intensify,” he said.
“Combine this environment with
our proven ability to deliver
sustainable profit growth for our
franchisees, most notably through
our 3.9 million Sister Club members
and it is clear to see why the
Priceline Pharmacy network will
continue to expand,” he added.
Looking forward, Roche said that
the company’s Priceline strategy
will be to stimulate more activity
from within its Sister Club base.
Roche also used the results
announcement to confirm that
whilst it is still early days, Priceline’s
full online offering is being well
received by the public.
In other pharmacy news, the
company confirmed its distribution
sector had stabilised and made
market share gains during the year
which offset market share losses in
the prior year.
“We continue to have a highly
competitive offering for pharmacists
and our Soul Pattinson, Pharmacist
Advice and API Premium offerings
to independent pharmacists
continue to provide growth,” he said.
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