Terry White plans ‘transformational’ year

The Terry White Group is committed to further network expansion and the next 12 months will be “transformational” to the company, its CEO Anthony White says.

The group has just reported a 47% increase in revenue to $70.57 million for the financial year ended June 30 2016, with a net profit after tax of $1.84 million (up from $1.22 million) and a 107% increase in consolidated earnings before interest, tax, depreciation and amortisation.

White says the group’s acquisition of the Chemplus pharmacy network in July 2015 has been earnings accretive and delivered significant benefits to the group during the period; its merger with Chemmart will create one of Australia’s largest retail pharmacy networks with a turnover of $2 billion and approximately 500 pharmacies.

“We expect the current consolidation in the industry to continue in the short to medium term and this will present potential future opportunities for the group,” White says.

“We are well placed and have a strong balance sheet to support further planned mergers with like-minded pharmacies to increase our market share and competitiveness, to ultimately achieve enhanced financial performance and a strengthened market position.

“We are confident that the merger with Chemmart will deliver continued earnings improvement through increased scale and will position us to achieve our long term vision of becoming Australia’s strongest retail pharmacy network,” he says.

White says the size of the Chemmart merger is unprecedented in the Australian pharmacy industry and will deliver significant scale benefits to the Terry White Group’s pharmacy owners and their customers.

“Through the merger, we will build upon our strong market position and harness our collective strengths and capabilities to create a new force within the industry through the combination of the Terry White Chemists, Chemplus and Chemmart networks.”

Highlights of the group’s report include:

  • 47% increase in revenue to $70.57 million
  • 107% increase in EBITDA to $7.71 million
  • Net operating cash inflow increased by 116 % to $7.15 million
  • Above market increase in like-for-like retail sales
  • Final dividend of 5 cents per share declared, resulting in 8 cents per share for the year, fully franked, consistent with previous period.

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