STRONG SALES BOOST TERRY WHITE'S RESULTS
Written on the 13 March 2015
INCREASED revenue streams across Terry White Chemists has dispensed strong half-year results for parent company, TWC Group Investments Limited.
TWC reported total operating revenue of $22.9 million, a 16 per cent lift in the six months to December 2014 compared to the previous period.
Earnings before interest tax depreciation and amortisation increased 113 per cent to $764,000, with the company reporting $149,000 in net profit after tax.
TWC CEO Anthony White (pictured) says a number of factors contributed to the positive results, including a boost in store revenue, streamlined management and pharmacy initiatives.
"This is a particularly strong result when compared to the latest industry trends," White says.
"Retail sales growth for our network has developed a significant momentum and is continuing into the second half, with results for the two months to February 2015 being 3.6 per cent above the same period last year, on a like-for-like basis.
"Combined with well-above-market unit growth in prescription volume, these results act as a major and timely counter to help offset the effects of PBS reforms on the pharmacy network."
Product revenue was also up 97 per cent at $7.8 million, as the company focuses on expanding its private label range including its latest offering Nourex.
"Our most recent private label launch, Norex, a professional range of evidence-based, targeted and multi-active vitamins is a great example of that," White says.
He says the pharmacy endorsed range will remain a key priority to continue "future-proofing" the network.
To facilitate further growth in the full-year, TWC implemented an expanded franchise offer to make pharmacy ownership more accessible.
White says this includes assisting pharmacists with administration, financing, human resources and property leasing solutions.
"The expanded offer joins Terry White Chemists' four flexible formats, the group's substantial systems investment, fast-growing CRM platform and strong private label range as some of the key initiatives laying a solid and sustainable foundation for growth."
TWC has forecast FY15 earnings will be comparable to the previous financial year, with income streams flowing more evenly throughout the period.
The unlisted company has valued the Terry White Chemists franchise network at $1 billion.