Australian Pharmaceutical Industries Limited Announced Results For FY 2018

  • Oct 18, 2018 AEDT
  • Team Kalkine
Australian Pharmaceutical Industries Limited Announced Results For FY 2018

The Australian Pharmaceutical Industries Limited (ASX:API) is involved in the operations of wholesale distribution of pharmaceutical, medical, health, beauty, and lifestyle products to pharmacies. On 18 October 2018, Australian Pharmaceutical released their full year results of FY 2018. At the end of the year, the balance sheet of the company is looking strong, and it is also providing flexibility for further capital management. After the release of this news, the share price of the company increased by 0.29 percent as on 18 October 2018 (1:30 PM AEST).

The company managed to achieve strong financial results in FY 2018 despite the ongoing PBS (Pharmaceutical Benefits Scheme) Reforms and price adjustments. The company reported underlying NPAT of $54.7 million in FY 2018 which was 0.9 percent higher than the previous year. The total revenue of the company slightly decreased by 0.9 percent to $4.0 billion, reflecting a decrease in the demand for Hepatitis C medicines of approximately $155 million. Due to the effect of an increased number of price reduction cycles in the PBS during FY 2018 and exclusive direct distribution arrangements, the Underlying EBITDA decreased by 1.5 percent to $118.7 million. The company reported net debt of $55.9 million in FY 2018, and excluding the acquisition of Clear skincare it would have been net cash of $5.8 million. 

The overall Priceline Pharmacy performance also improved in FY 2018 as the total network sales increased by 2.1% to $2.11 billion with total network like-for-like sales down by 0.2 percent. The pharmacy distribution revenues of the company were slightly lower at $2.9bn in FY 2018. There was a significant improvement in the Consumer Brands business of the company as the revenues increased by 17 percent to $59.3 million in FY 2018 as compared to previous year. The EBIT of consumer brand business increased by $2.1 million to $2.8 million in FY 2018.

The board declared a final fully franked dividend of 4.0 cents per share for FY 2018, which is an increase of 14.3 percent compared to previous year, taking the full year fully franked dividends to 7.5 cents per share. These dividends are planned to be paid on 7 December 2018.

For FY 2019, the company is planning to introduce unique formulations in OTC (Over the Counter) health market. The company is also broadening its product range through agreements with reputable international partners.  Moreover, the company is eying to develop opportunities in the Asian Market. For FY19, the capital expenditure of the company is expected to be consistent with FY 2018. The company will continue to review its option for the future investment in a Sydney DC. The payments for the Clear skincare acquisition are expected to be made in September 2020 and 2021. The company is also having sufficient franking credits for future dividend payments.

In the past six months the share price of the company increased by 13.16 percent as on 17 October 2018. API’s share traded at $1.725 with a market capitalization of $846.98 million as on 18 October 2018 (AEST 1:30 PM).

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK