Healthcare company Australian Pharmaceuticals Industries Ltd (API) says it's looking forward to further growth in fiscal 2010 after posting a 22.5 per cent jump in full year net profit.
API, which operates Priceline stores, also announced a $150 million equity raising on Wednesday.
The company posted a net profit of $18.598 million for the year ended August 31, up from $15.213 million in the prior corresponding period, after higher sales at its Priceline stores and in its pharmacy division.
Group revenue for the year was up 9.6 per cent at $3.55 billion.
API said it expects to grow net profit by about 10 per cent in fiscal 2010, excluding the impact of the equity raising.
The company said it would raise $150 million by way of a full underwritten, non-renounceable, pro-rata entitlement offer to existing shareholders and placement to institutions at an offer price of 65 cents per new share.
The proceeds will be used to reduce company debt and allow for continued investment in the Priceline brand, API said.
Shares in API closed at $1.055 on Tuesday.
API also declared a fully franked dividend of two cents per share, up from one cent per share in fiscal 2008.
API's equity raising consists of a two-for-three entitlement offer to raise $112 million and an institutional placement to raise $38 million.
Washington H. Soul Pattinson & Co Ltd, API's largest shareholder with a 25 per cent stake, has committed to take up its pro-rata share of the entitlement offer and placement.
For fiscal 2009, API's pharmacy division reported an 11.3 per cent jump in sales, while the Priceline retail stores grew comparable store sales by 5.4 per cent.
API chief executive Stephen Roche said this performance was "pleasing" given the uncertainty in consumer confidence created by the global financial crisis.
"The brand was well placed at the value end of the retail market and continued to offer customers a competitive offer enabling us to ride out the year well," he said.
API, which currently has 321 Priceline stores (205 franchised), said it was aiming for 400 Priceline stores by the end of 2010 or early 2011.
© 2009 AAP
