PRESCRIPTION FOR SUCCESS
TERRY White Chemists has flagged more acquisitions after posting a bumper full-year result.
The Brisbane pharmacy group announced a net profit of $1.2 million on the back of a 16 per cent increase in revenue to $48.8 million for the 2014-15 financial year.
Chief executive Anthony White said the past year had been “transformational” for the company following the successful acquisition of 60 Chemplus stores, boosting the group’s presence to 224 stores nationally.
Mr White said he hoped increased retail sales would power profits moving forward and hinted further acquisitions of like-minded chains could be on the cards.
“With the Chemplus acquisitions now complete we are actively pursuing our strategy to consolidate with other likeminded pharmacy brands,” he said.
“We expect industry consolidation will continue in the short-to-medium term and we are well placed to take advantage of the opportunities for the greater benefit to our entire network.
“We are consistently achieving above market like-for-like retail sales growth in our pharmacies as a result of the investment we’ve made to grow our front-ofshop income and diversify revenue streams.”
Mr White flagged potential issues, including price reduction rules and discounts to co-payments, which highlighted the need to diversify income.
The company’s private label has allowed the group to offer products at competitive prices while delivering generous margins for franchisees and is likely to continue to be a cornerstone of the product range.
Mr White also announced that shareholders had unanimously resolved to change the company name to Terry White Group Limited at an extraordinary general meeting.