TUMBLE IN SHARE PRICE NOT TOO BEAUT FOR API
SHARES in Australian Pharmaceutical Industries have plunged more than 13 per cent after the drugs distributor and pharmacies supplier issued a profit warning after the share market closed on Wednesday.
API shares closed 13.01 per cent or 23¢ lower at $1.53 – the worst performer on the ASX 200 yesterday.
The company, which supplies pharmacies and health and beauty stores under its Priceline banner, has lowered its profit growth forecast for the 2016/17 fiscal year as customers spend less.
It now expects net profit for the 2016-17 financial year to be about five per cent higher than in the prior year, down from its previous forecast of an increase of at least 10 per cent.
Chief executive Richard Vincent said the number of transactions in the company’s retail network had grown and new store openings were on track, but consumers were spending less per shop and were buying lower value items.
“We are experiencing similar consumer sentiment as reported by other retailers over recent weeks,” Mr Vincent said.
“Despite conditions in the second half being challenging, we are holding our share of the available market and have significant new product launches to help stimulate demand in coming months.”