Terry White Group (TWG) attributed a “significant increase” in net profit after tax (NPAT) for the financial year ended June 30 to its commitment to harness post-merger business synergies.
According to the group’s financial statement, NPAT rose to $4.4 million from its 2017 loss result, which was impacted by acquisition, integration and rebranding costs following the merger in 2016 of the Terry White Chemists, Chemplus and Chemmart Pharmacy networks
TWG said the 12 months to June 30 had seen TWG continue to grow from the merger, which delivered significant scale and provided a strong foundation for future growth, helping to deliver enhanced earnings and improved returns for shareholders.
Total revenue increased 38 per cent to $125.5 million (2017: $91 million), which TWG said was attributable to a full year of trading as a combined group.
“These improved financial results have been achieved through the alignment of products, merchandising, marketing and store development; enhancements in operational efficiencies; and sales growth across the network driven in part by higher levels of brand recognition,” TWG said.
“A key focus during the past 12 months has been to increase the efficiency and profitability in the TWG pharmacies through simplified operations; reduced cost of goods; by delivering a more productive product range, and by promoting a differentiated customer proposition.
“The rebranding program of our entire network is almost complete, with more than 400 pharmacies now operating under the TerryWhite Chemmart brand with our distinctive green livery.
“The rebranding project has been complemented by the success of the group’s first national media campaign ‘Alive and Well’.”
TWG added that the company’s focus on delivering accessible frontline healthcare remained a core strategic driver, with the successful launch of its health app and the increasing popularity of its annual flu vaccination campaign.
More than 400 pharmacists from the network also attended the annual Masterclass event in a bid to improve their practice and provide a quality service for our customers.
The TWG board has decided that, in order to provide the group with maximum flexibility, it is in shareholders’ interest to retain earnings for reinvestment and to not declare a dividend for the financial year just completed.