Shares in Pharmacybrands rallied to a three-week high after the retail pharmacy and medical centre company lifted first-half profit 52 per cent, bolstered by a full six-month contribution from Radius Pharmacy and Radius Medical, acquired in 2011.
Net profit rose to $6.2 million, or 5.11 cents per share, in the six months ended Sept. 30, from $4.1 million, or 3.85 cents, a year earlier, the Auckland-based company said in a statement. The 2011 earnings were eroded by a $1.1 million charge from write-downs and acquisition costs, it said. Sales inched up 0.1 per cent to $54.2 million.
The stock rallied 3.4 per cent to $1.22, adding to its 46 per cent gain this year. That values the company at $150.2 million.
"In the current six months we have also seen cost savings due to central office consolidation following last year's Radius acquisition," the company said. "The strength of our pharmacy franchise group remains a big focus and we have developed further services to assist franchisee pharmacy revenue growth."
Shareholders agreed to a dividend reinvestment plan, which would let them forgo a cash return in favour of receiving more shares, to let majority shareholders Cape Healthcare and LPL Trustee participate without breaching Takeovers Code requirements.
