Terry White and Chemmart merger
Pharmacy group Terry White has lifted its annual profit by half after merging with rival Chemplus, and is looking for more mergers to fuel further growth.
The company's net profit rose to $1.84 million in the 12 months to June 30, up from $1.22 million in the prior year, as earnings doubled following the acquisition of Chemplus pharmacies in July 2015.
Terry White Group recently announced it is merging with Chemmart to form one of Australia's biggest retail pharmacy networks, with about 500 pharmacies and a turnover of $2 billion.
Chief executive Anthony White said the company is well positioned to pursue another merger with a smaller pharmacy group with 20 to 40 stores in Australia.
"The main thing is to get a group that's fairly like-minded and really focused on healthcare and frontline health services and really making the pharmacist the centre of all things we do," he told AAP.
Mr White said health services differentiate Terry White Group pharmacies from its main competitors.
"We train and develop the pharmacists to be up front and accessible to the customer, whereas you go into a Priceline store or a Chemist Warehouse store, they're really hidden, they're secondary to the product on sale," he said.
Terry White Group has about 430 shareholders, including co-founders Terry and Rhonda White, and is looking at a public offering in the next 12 to 24 months, Mr White said.
"We've definitely got the base to do it now and maybe if we can do another acquisition in the next 12 months or so that would be a great base to go forward with," he said.
"This transaction with Chemmart has been very rewarding for the shareholder base, and hopefully we bring it through to an IPO and it'll be even more successful for them."
TERRY WHITE ENJOYS HEALTHY PROFIT GROWTH
* Net profit up 50pct to $1.84m
* Sales revenue up 47pct to $70.6m