TerryWhite Chemmart released its half year financial results and operational updates after the two pharmaceutical companies Terry White Group and Chemmart merged last year.
CEO Anthony White said the past six months had been transformational. TerryWhite Chemmart is set to become Australia’s largest retail pharmacy network — with approximately 500 pharmacies nationwide.
“The merger cemented our position in the market, providing our pharmacy owners with a highly competitive offering, while establishing TerryWhite Chemmart with a solid platform for continued expansion,” White said.
“The substantial scale we’ve achieved will deliver a range of critical benefits to our members, including significant supply-chain efficiencies that will support continued sales growth across the network.
White said the pharmacy’s consumers now have more access to leading frontline healthcare and better customer’s service. He also mentioned the company moved quickly to roll-out its new brand, which is aligned to TerryWhite Chemmart’s strategic position as leaders in the delivery of highly accessible frontline healthcare.
“We have already started rolling out the new brand and have received very positive feedback – there are already ten pharmacies operating under the new brand and by the end of 2017, all pharmacies within our expansive network will be operating as TerryWhite Chemmart. With significant scale, we are confident the network’s new brand will make an instant impact in the market place,” according to White.
“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.”
He said the integration process has been smooth sailing all throughout the organisation with “the teams working well together and benefiting from the complementary capabilities each organisation brings to TerryWhite Chemmart. As a result of our pre-planning, it has been a trusted partnership of equals from day one.”
The pharmaceutical group reported consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) of $3.4 million for the half year ended 31 December 2016, up 66 per cent on the prior corresponding period and net profit after tax (NPAT) of $1.3 million (up 3 per cent).
“Total revenue doubled from $16.9 million to $33.9 million, with service revenue up 55 per cent from $12.8 million to $19.9 million. 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,” White elaborated.
White said the merger of Terry White Group and Chemmart provided the company with a solid foundation for future growth.
“We are committed to achieving our five-year goal of doubling our network size to secure a strong and sustainable future for our pharmacy owners. 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,” he concluded.
