TWC reports $8m earnings
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.