3 Key Facts From The Australian Pharmaceutical Industries Ltd (ASX:API) Report


Companies & indices mentioned:


Australian Pharmaceutical Industries Ltd (ASX: API) has reported its annual report for the year ended 31 August 2018.

Australian Pharmaceutical Industries is a pharmaceutical distribution, retailing and manufacturing business. It operates the Priceline chain of pharmacies around Australia.

3 Key Facts:

1: Total revenue decreased by 0.9% to $4.03 billion.

Management attributed a key part of the decline to a drop in demand for Hepatitis C medicines of around $155 million. Excluding that factor, revenue increased by 3.3% compared to the previous year.

2: Net profit after tax fell 8.2% to $48.2 million.

This figure includes the $4.1 million costs relating to the Clearskincare acquisition and $2.5 million relating to business restructuring to lower the ongoing cost base. Excluding these effects, underlying net profit grew by 0.8% to $54.7 million according to the company.

3: The final dividend was increased by 14.3%.

API declared a 4 cents per share fully franked dividend. This brought the company’s dividend payout ratio to 77%.

Outlook

The company is predicting that it will achieve earnings growth in FY19.

Managing Director Richard Vincent said: “While still only early in the year, retail trading in FY19 is in line with our internal expectations. We await the Christmas trading period and the outcome of the CSO review before providing further guidance.”

The Australian Pharmaceutical Industries share price has risen 8.8% over the past year according to Google Finance.

Podcast: Afterpay, Family and Investing

If you’re wanting to know more about Afterpay and how to become a better investor, this episode of Rask Group’s Australian Investors Podcast is a ‘must listen’ for serious investors. This episode provides unique insights from an Australian investor who’s keen on some ASX tech shares.

Tune in to The Australian Investors Podcast to hear from Australia’s leading investors and financial thinkers. Download the latest episode free on iTunes,  CastboxYouTube or wherever you choose to listen.

*As voted by us

itunessoundcloudcastboxdownload

Jaz Harrison

Jaz Harrison

Jaz is a keen investor who loves to thoroughly poke holes in an investment idea before it has a chance of making it into her portfolio. Jaz invests for the long-term and doesn't sweat the small stuff. She strongly believes that empowering people with knowledge is the best way for them to take charge of their finances, which is exactly the approach she takes with her own money and investments.