Green Cross Health first-half profit falls 2% as costs rise

Tuesday 25th November 2014

Green Cross Health, formerly known as PharmacyBrands, posted a 2 percent decline in first half profit as higher wage and lease costs offset a pickup in sales.

Profit was $6.9 million in the six months ended Sept. 30, down from $7.1 million a year earlier, the Auckland based company said in a statement. Sales rose to $134.8 million from $127 million.

The owner of the Life Pharmacy and Unichem pharmacy chains has been widening its portfolio of businesses, agreeing this month to acquire Access Homehealth, a not for profit home healthcare services company. That adds to its purchase of medical centre business Peak Primary and a 50 percent stake in in community nursing and health care business Total Care Health.

"Our strategy of being an integrated primary care provider remains a key focus for the board," said chairman Peter Merton.

Pharmacy retail sales from total stores rose 5 percent from a year earlier, while medical profit rose by 18 percent, the company said.

"The key drivers for this have been the rebranding of the groups pharmacies with all but a handful of pharmacies now under the Life Pharmacy and Unichem brands," the company said.

It will pay a first-half dividend of 3.5 cents a share. Shares of Green Cross rose 4.3 percent to $2.17 and have gained 66 percent this year.

BusinessDesk.co.nz

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