TWG revenue surges 38%

TERRY White Group Limited (TWG) has reported a strong year, with the company’s turnover increasing almost 40% to $125.5m.

The figures for the 12 months to 30 Jun also reveal a turnaround in net profit after tax, with the company recording a $4.4m result this year, versus a $900,000 loss for the same period in 2016/17.

The company said it was continuing to grow from the transformative merger in 2016 of Terry White Chemists, Chemplus and Chemmart Pharmacy networks which delivered significant scale.

The solid increases to earnings and revenue were attributed to a strong commitment to harnessing post-merger business synergies.

“These improved financial results have been achieved through the alignment of products, merchandising, marketing and store development, enhancements in operational efficiencies, and sales growth across the network driven in part by higher levels of brand recognition,” TWG said.

The company said a key focus had been to increase the efficiency and profitability within its pharmacies through simplified operations, reduced cost of goods, by delivering a more productive pocket range and by promoting a differentiated customer proposition.

The rebranding of the entire network is almost complete, with over 400 pharmacies nationally now operating under the new green TerryWhite Chemmart brand.

The company has conducted its first national media campaign, which focused on its commitment to provide the most qualified and accessible pharmacists, the best health programs and a storewide price match guarantee value offer.

Terry White Group said this had helped generate strong customer awareness and recognition of the combined brand.

No dividend was declared, with the company‘s board saying it continues to actively review its strategic approach and options for creating liquidity for shareholders.

“The company is confident its vision to be Australia’s favourite pharmacy, backed by our strategic focus on front line health care combined with our network’s scale, will build a solid platform for continued financial and operational growth in a highly competitive retail sector,” a formal statement concluded.