Priceline chemist chain operator Australian Pharmaceutical Industries surprised on Thursday with a 30% slide in interim profit thanks to the impact of COVID shutdowns.
API posted a half-year net profit of $17.7 million this morning, down 30.3% on the same time last year.
Underlying earnings before interest and tax (EBIT) dipped 26.5% to $32 million while reported EBIT fell 25.2% to $29.4 million
Despite the sharp fall, shareholders will get an interim payout.
API declared a fully franked interim dividend of 1.5 cents, payable on June 4.
There was no interim paid for 2019-20 – the last interim was 3.75 cents a share in 2019.
API paid a final of 2 cents a share last November.
The pharmacy and skin care operator said total revenues eased 2.6% to $2 billion, while CBD shutdowns due to the pandemic hit sales at flagship Priceline stores in Melbourne by 65%, while Sydney sales were down 51%.
“While CBD foot traffic is slowly recovering, it was well below the prior period and consequently first-half retail trading results are significantly below last year’s COVID-free result,” CEO Richard Vincent said in the statement to the ASX.
The firm’s Clear Skincare business was also shut during lockdowns, but Mr Vincent said the business had seen a strong bounce-back over the past few months.
The company has also been increasing its investment in online shopping, as well as preparing pharmacies for an eventual role in the COVID-19 vaccinations program.
“Our strong track record in effectively managing flu vaccinations means we are better placed than most to quickly roll out COVID vaccinations. We’re incredibly conscious of the responsibility we have to get the rollout right to reduce the risk of COVID breakouts in our community,” Mr Vincent said.
The shares slid 1.4% to $1.34 in early trading on the news of a lower result.
