Green Cross Health first-half sales rose 6.9%, profit falls on year-earlier one-time gain

Monday 27th November 2017

Green Cross Health, the listed medical services provider, posted a 16 percent decline in first-half profit, mainly reflecting a one-time gain in the year-earlier half, while sales rose 6.9 percent.

Profit was $8.8 million in the six months ended Sept. 30, from $10.5 million a year earlier, the Auckland-based company said in a statement. Operating revenue rose to $254 million from $238 million. The year-earlier profit included a one-time fair-value gain of $2.8 million.

Green Cross, which was formerly known as PharmacyBrands, has a network of 354 Unichem and Life Pharmacies that represent its biggest division and posted a gain of about 12 percent in first-half operating profit before interest and tax to $13.8 million. The gain was "driven by strong dispensary and franchise revenues and consistent retail sales," it said.

Its medical division, which has 33 medical centres and operates The Doctors brand, recorded a 3.6 percent gain in operating earnings to $1.45 million. Its third business is the Community Health division, which posted 14.2 percent growth in sales to $62.9 million and operating earnings growth of 11.2 percent to $1.3 million.

Chairman Peter Merton said Green Cross "is on track to continue its upwards trajectory with a focus on growth via acquisition and continued investment in delivering health care in line with the New Zealand Health Strategy."

The company will pay a fully imputed interim dividend of 3.5 cents a share on Dec. 22 with a record date of Dec. 11. It offers a dividend reinvestment plan.

Shares in Green Cross Health last traded at $1.74 and have declined 32 percent in the past 12 months.

(BusinessDesk)

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