Expanding Life Pharmacy eyeing new retail centres

Life Pharmacy shareholders were given a taste of the company's expansion plans at its annual meeting in Auckland yesterday.

The company was looking to boost its 21-business pharmacy chain to a maximum of 30 stores throughout the country, said its chairwoman Liz Coutts.

Store locations were being negotiated in a number of new retail developments.

"We have commenced work on new store opportunities, and are in negotiation to acquire excellent locations in a number of newly emerging, high-traffic retail environments," she said.

"We believe there is scope to increase the group size through greenfields initiatives to a maximum of 30 stores."

The company was also looking to develop alternative brands which would allow it to target new markets.

Life Pharmacy is expecting a net profit of $2.08 million for the year to next March, after downgrading the figure last week from the $2.5 million forecast given in May.

This compares with the $76,000 loss for its inaugural group result revealed the same month, but that included only six months of contribution from its profit-making pharmacy chain.

Chief executive Tim Roper said the pharmacies were expected to earn revenue of $96.5 million for the period, and to pay a dividend of 4.43c a share for the 2006 year.

Life Pharmacy became New Zealand's first listed pharmacy group in March via a back door listing through online cosmetics retailer Beauty Direct.

The $38.4 million deal saw Beauty Direct buy Life Pharmacy's assets, including its brand and its 49 per cent shareholding in 18 pharmacy companies, paying for them with Beauty Direct shares.

Shares in the company closed steady at $1.23 last night.