API, one of Australia’s biggest health and beauty retailers, posted an underlying net profit of $29.1 million in the six months ending February 28, up 15 per cent. Its bottom line profit was up 27.2 per cent.
This came on the back of the Priceline Pharmacy network expanding to 450 stores, an increase of 25 stores over the last 12 months. It expects to expand by at least 20 store this financial year.
Total retail network register sales were up 7.2 per cent.
The group increased its market share in dispensary, skincare, OTC health and colour cosmetic segments.
“We have increased NPAT and returns to shareholders through organic growth in our Priceline Pharmacy network, despite the slower retail conditions in 2017, while generating cash and sustainable returns through our pharmacy distribution business,” API’s chief executive officer and managing director, Richard Vincent, said.
Mr Vincent foreshadowed a tough year ahead for retailers but said API would come through it.
“We remain confident in our retail store pipeline and in reducing operational costs as a consequence of our prior capital investments,” Mr Vincent said.
“API expects another year of record full year net profit after tax, a minimum 10 per cent up on 2016, assuming the current trading conditions persist.”