Small profit for Life Pharmacy

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Life Pharmacy reported a full year net profit of $61,000, with the company saying retail and dispensary sales were strong across all its stores including franchisees.

The result for the year to the end of March follows a loss of $570,000 the year before. It was made on revenues up 21.3 percent to $7.2 million.

The group includes 50 retail outlets. There are 23 Life-branded outlets in which it has a 49 percent shareholding, and a small number of other Life-branded stores. The group also provides a franchise service for about 20 Care Chemist outlets.

Life Pharmacy chairman Liz Coutts said that despite the current economic environment, both retail and dispensary sales had been strong across all Life Pharmacy stores, including franchisees.

Total sales growth was above 5 percent, with comparable store growth around half that rate.

"This represents a very commendable retail performance in an environment that continues to be challenging," Ms Coutts said.

"We are fortunate that beauty products are often regarded as affordable luxuries, a category which traditionally performs well even during recessionary periods, creating opportunities that our marketing team has been able to take advantage of."

The company completed the acquisition of Care Chemist Services, franchisor to eight Care Chemist branded community pharmacies in the greater Auckland area a year ago. Since then a further 13 Care Chemist franchisees had joined the group.

The $11.6m raised through a renounceable rights issue left Life Pharmacy well placed to make further investments in the health, beauty and wellness sector, Ms Coutts said.

NZPA