The soon-to-merge Terry White pharmacy group announced an increase in revenue and earning for the 12 months to 30 June 2016.
Terry White Group recently announced a merger with Chemmart to create one of Australia’s largest retail pharmacy networks with a turnover of $2 billion and approximately 500 pharmacies.
Under the terms of the merger, EBOS Group will sell the business assets of Chemmart to Terry White Group in exchange for equity and will invest additional capital to achieve a 50 per cent equity stake in the merged entity.
The current Terry White Group reported a 47 per cent increase in revenue for the year to $705 million, largely on the back of its July 2015 acquisition of the Chemplus pharmacy network. Net profit after tax of $1.84 million was up from $1.22 million for the previous year.
“Our strategy is well defined and is built upon offering a strong, sustainable business model for our pharmacy owners, while continuing to increase our national footprint to deliver scale benefits and margin growth across the group,” said CEO Anthony White.
“In recent years, we have invested significantly in developing a highly sophisticated retail model to provide our pharmacy owners with a solid, diversified revenue stream to help offset ongoing PBS reforms.
“This investment, combined with our Value Health Strategy has delivered an above-market increase in like-for-like retail sales, which comprise more than half of all network sales.
“In addition, in-store efficiencies have improved, enabling our pharmacists to deliver enhanced levels of service to our customers to strengthen our market position.
“Our core retail capabilities and support platforms are scalable to deliver synergy benefits and facilitate future network expansion.”
According to Mr White, the merger with Chemmart was the next step in the company's growth strategy.
“The size of this merger is unprecedented in the Australian pharmacy industry and will deliver significant scale benefits to our pharmacy owners and their customers,” he said.
“Through the merger, we will build upon our strong market position and harness our collective strengths and capabilities to create a new force within the industry through the combination of the Terry White Chemists, Chemplus and Chemmart networks.
