Green Cross annual profit falls 4.1% on higher staff costs

Tuesday 26th May 2015

Green Cross Health, formerly known as PharmacyBrands, posted a 4.1 percent decline in annual profit as its staff costs increased.

Profit attributable to shareholders fell to $14.4 million in the year ended March 31, from $15 million a year earlier, the Auckland based company said in a statement. Group profit including the share of non-controlling interests increased to $18.9 million from $18.8 million, with non-controlling interest receiving $4.5 million in the latest financial year, up from $3.8 million a year earlier. Sales rose 25 percent to $322.4 million, while cost of sales rose 15 percent to $168 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.

The company's assets increased to $191.1 million at balance date, from $134.5 million a year earlier, while its total liabilities widened to $91.6 million from $45 million.

“We believe we have achieved a significant amount during the year that sets the company up well for the future,” chairman Peter Merton said. “The acquisitions of Peak Primary medical centres and Access Homehealth establish us as a leading player in New Zealand’s primary health care market, a development we have successfully managed while achieving strong sales and franchisee growth in our pharmacy business.”

Sales at its pharmacies increased to $265 million, from $246 million a year earlier. Its medical services unit doubled sales to $24.7 million. Its new community care unit reported sales of $32.5 million.

The board declared a final dividend of 3.5 cents per share, unchanged from a year earlier and payable on June 19 with a record date of June 10.

Shares of Green Cross fell 3.6 percent to $2.40 and have advanced 17 percent since the start of the year.

BusinessDesk.co.nz

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