LOCKDOWNS HIT PRICELINE
LOCKDOWNS from Melbourne to Auckland have hit Priceline and Soul Pattinson owner Australia Pharmaceutical Industries, with the company’s half-year net profit diving 29.3 per cent to $15.9m.
Revenue sagged 2.6 per cent to $1.98bn in the six months to February 28.
API chief executive Richard Vincent said the results “reflect the impact of pandemic-related lockdown restrictions and lower CBD foot traffic”.
“Priceline Pharmacy’s likefor-like sales were down significantly in its two largest CBDs with Melbourne down by 65 per cent and Sydney down 51 per cent,” he said.
“While CBD foot traffic is slowly recovering, it was well below the prior period and consequently first half retail trading results are significantly below last year’s COVID-free result.”
Register revenue across Priceline plummeted 10.7 per cent to $526m, while gross profit fell 8 per cent to $103m.
Mr Vincent reiterated his threat, first made last year, of closing Priceline stores if API failed to renegotiate lease agreements.
Across its pharmacy distribution business, revenue was steady at $1.46bn, easing 0.9 per cent. Mr Vincent attributed the flat revenue growth to the loss of its Chemist Warehouse overthe-counter contract after its “temporary arrangement” with the chain ended.
But he was confident the distribution business was positioned for growth.
“Assuming we do not experience any more major economic shocks, such as higher than anticipated unemployment levels, and on the basis that workers return to shopping in the CBDs, we expect our full year profit result to be broadly in line with current market expectations,” he said.
The company will pay an interim dividend of 1.5c a share on June 4.