Slow festive sales hit Priceline

SHARES in the company behind the Priceline Pharmacy chain have fallen after it warned of a fall in first- half profit on the back of lacklustre Christmas trading.

Australian Pharmaceutical Industries yesterday said net profit for the six months to February was likely to clock in around $ 26.5 million – 9 per cent below the tally from the same period a year ago.

Full- year profit is forecast to be marginally above the re- sult for the past financial year of $ 52.37 million.

Chief executive Richard Vincent said that unlike in 2016, when sales were strong, consumer spending remained subdued throughout 2017.

That weakness did not abate over Christmas, he said.

Overall network sales for the financial year to date were up 2 per cent, while like- forlike “front of store” sales – covering products such as toiletries and perfumes — had fallen 2.4 per cent.

“We expect to see benefits flow from the steps we have taken to address the tougher retail environment,” Mr Vincent said.

“We’ve strengthened and streamlined our retail leadership team to drive a more responsive business in the changing consumer environment, particularly in the important beauty segment.”

The group also owns the Soul Pattinson Chemist brand.

Its dividend payment for the first half is expected to remain at 2.5c a share, fully franked.