Pharmacybrands elects to pay down debt instead of dividend
Pharmacybrands Ltd is electing to pay down debt rather than pay shareholders a dividend from a year in which it increased profit.
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Pharmacybrands Ltd is electing to pay down debt rather than pay shareholders a dividend from a year in which it increased profit.
The company made a $5.16 million profit in the 12 months to March 31, up from $3.5 million last year when it only owned Life Pharmacy for part of the year. The profit was achieved on revenue of $21.7m from $16.2m last year.
"The result shows that the company has successfully integrated the two businesses it brought together in the previous year," said chairman Peter Merton.
The company's partnership model, with a 49 percent investment by the company alongside a 51 percent holding by a pharmacist partner working in the business, continues to be a profitable investment model for all parties.
Pharmacybrands had cash reserves in excess of $15m as March 31 but it has made two acquisitions since then.
"The board therefore believes that it is more prudent to reduce this debt rather than pay out a dividend at this time," the company said.
NZPA
Fri, 27 May 2011
Fri, 27 May 2011
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Pharmacybrands elects to pay down debt instead of dividend
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