PharmacyBrands profits up 52pc

03:40, Nov 28 2012

Chemist chain operator PharmacyBrands has reported a 52 per cent jump in half year net profit, as it puts the costs of its acquisition spree behind it.

However, its revenues were flat amid tough retail conditions.

The firm posted a net profit of $6.2 million for the six months ended September 31, up from $4.1m in the same period a year ago.

Revenue for the period came in at $52.4m, up just 0.1 per cent on the previous year, due to the "challenging" retail environment over the past six months.

Much of the profit gains came from lower operating expenditure compared with the previous period, when the firm's balance sheet bore a $1.1m impact from the Radius Pharmacy acquisition.

In addition, PharmacyBrands said costs were further reduced by the central consolidation of back office functions. Total operating expenditure fell to $19.7m from $20.7m previously.

A true period-on-period comparison was muddied by some of the Radius earnings only applying for four months, but on a same store basis total revenues from equity interest in pharmacies, including retail and dispensary, fell 1.2 per cent.

"We expect to see the focus placed on cost control to flow through in the form of savings in the second half,"said chief executive Alan Wham.

The directors declared a dividend of 2 cents per share, of which 1.7c is fully imputed to 30 per cent and the balance to 28 per cent, and is payable December 21.