TWC re­ports $8m earnings

Pharmacy Daily - - NEWS -

TERRY White Group yes­ter­day un­veiled its fi­nan­cial re­sults for the year to 30 Jun, with the com­pany record­ing earnings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­sa­tion of con­tin­u­ing op­er­a­tions of $8m.

How­ever the net loss af­ter tax for the par­ent com­pany of Ter­ryWhite Chem­mart was $864,000, due to “in­te­gra­tion and brand­ing costs”.

To­tal rev­enue surged 177 to $ 1m, in­clud­ing a dou­bling of ser­vice rev­enue to $50.7 mil­lion, with ceo An­thony White say­ing the past year had been trans­for­ma­tive for the group fol­low­ing its merger with Chem­mart.

He said the deal had de­liv­ered sig­nif­i­cant growth, and “although the re­tail en­vi­ron­ment re­mains highly com­pet­i­tive and frag­mented, we are con­fi­dent the com­bined group now has a solid plat­form for fu­ture growth”.

While costs as­so­ci­ated with the merger and in­te­gra­tion im­pacted profit, the un­der­ly­ing busi­ness re­mains strong, White said.

“We are very fo­cused...on har­ness­ing the syn­er­gies of the two groups and lever­ag­ing the in­creased cus­tomer recog­ni­tion from our re­brand to de­liver up­lift in earnings in the fu­ture,” he added.

White said all in­te­gra­tion ac­tiv­i­ties were on sched­ule, with 75 of the group’s ap­prox­i­mately 500 phar­ma­cies na­tion­ally al­ready now op­er­at­ing un­der the Ter­ryWhite Chem­mart ban­ner and the re­main­der to be com­pleted be­fore the end of Dec 2017.

“The speed at which the stores have been re­branded is im­pres­sive and we be­lieve the dis­tinc­tive green Ter­ryWhite Chem­mart sig­nage is hav­ing a real im­pact in the phar­macy sec­tor, with ex­tremely pos­i­tive feed­back from cus­tomers to date,” he said.

The re­brand is be­ing sup­ported with a sig­nif­i­cant in­vest­ment in mar­ket­ing, which will in­clude the com­bined group’s first na­tional con­sumer cam­paign.

White said the group was well po­si­tioned to lever­age its scale and in­creased lev­els of brand recog­ni­tion to fur­ther build re­tail sales and im­prove re­sults, de­spite the cur­rent sub­dued con­di­tions.

“The phar­macy sec­tor is fac­ing a great deal of change, and we are con­stantly work­ing to en­sure our mem­bers, and our busi­ness, are in the best pos­si­ble po­si­tion to deal with the chal­lenges that lie ahead,” White added.

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