All pharmacies within the TerryWhite Chemmart group are set to be rebranded by the end of the year, says its CEO
It’s been a “transformational” six months for the TerryWhite Chemmart group following the merger of the two banners, Anthony White said today in announcing its half-year financial results and operational update.
The group now operates as the largest retail pharmacy network in Australia, with about 500 stores nationwide. Ten are already operating under the new TerryWhite Chemmart brand.
And it’s committed to achieving its five-year goal of doubling the network size, Mr White says.
“Since announcing the merger of Terry White Group and Chemmart, we have received strong interest from pharmacy owners wishing to join our network. We are confident this will support an increase in our organic growth, which will further supplement our planned acquisitive growth with liked-minded community pharmacies.”
Mr White says the company moved quickly to roll out its new brand and has received very positive feedback.
“By the end of 2017, all pharmacies within our expansive network will be operating as TerryWhite Chemmart,” he says.
“With significant scale, we are confident the network’s new brand will make an instant impact in the marketplace. The new brand will be supported by a significant investment in above-the-line marketing to generate high levels of customer awareness and brand recognition.”
The merger cemented the group’s position in the market, he says, and the scale achieved will deliver a range of benefits to members, including “including significant supply-chain efficiencies that will support continued sales growth across the network.
“We operate in a highly competitive industry and are now in a much better position to meet the evolving needs of our customers. As a result of the merger, TerryWhite Chemmart members have access to substantially increased infrastructure which will deliver improved in-pharmacy efficiencies, increased levels of customer services and better access to leading frontline healthcare.”
He says cultural synergies which exist between the two groups have meant the integration process is proceeding well through all levels of the organisation.
“The teams are working well together and benefiting from the complementary capabilities each organisation brings to TerryWhite Chemmart.”
Mr White also announced the group’s financial performance: consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) of $3.4 million for the half year ended 31 December 2016, up 66% on the prior corresponding period and net profit after tax (NPAT) of $1.3 million (up 3%).
“Total revenue doubled from $16.9 million to $33.9 million, with service revenue up 55% from $12.8 million to $19.9 million,” he says.
“The increase in revenue and EBITDA was directly attributable to the merger of Terry White Group with Chemmart and we expect to see continued earnings improvement.”