• Australian Pharmaceutical Industries (API), the parent company of Priceline Pharmacy, released its latest financial results, reporting a 40.1% drop in earnings.
• The company also revealed that it has closed 14 Priceline stores, mostly in CBD locations.
• API is in talks with the government to distribute a possible COVID-19 vaccine once it becomes available.
• Visit Business Insider Australia’s homepage for more stories.

Australian Pharmaceutical Industries (API), the parent company of Priceline, has revealed a round of store closures, but says it intends to expand its network in 2021.

In API’s latest financial results for the year ending August 31 2020, it reported underlying earnings before interest and taxes (EBIT) of $46.3 million – a 40.1% drop from the year before. Revenue, however, was up 0.2% to $4.0 billion despite lockdowns affecting its Priceline and Clear Skincare businesses.

API also revealed the closure of 14 Priceline stores – with 474 stores remaining as of August 31.

“We have taken the decision to close some of our company-owned (non-pharmacy) stores, mostly in CBD locations,” API CEO and Managing Director Richard Vincent said in a statement. “This process was in train before the impact of COVID-19 and we have accelerated it since.”

However, Vincent added that there are a pipeline of independent pharmacists still looking to join the network.

Priceline’s use of Click and Collect, and Click and Deliver services saw the company’s online sales spike 69% from the year before.

“Our Priceline Pharmacy online offering is going from strength to strength and our timing was good in that we were up and running before COVID-19 hit,” Vincent said.

“We launched Click & Collect in January 2020 and this has grown significantly through the year. Since COVID-19, the business has averaged a 116% increase in sales via this channel.”

Looking ahead, API is looking to expand its Priceline pharmacy network in 2021 and is in talks with the government to distribute a potential COVID-19 vaccine if and when it’s available.

“The strength of our pharmacy distribution system in delivering vital medicines during the bushfire and COVID-19 emergencies was clearly demonstrated and we stand ready to play whatever part the government determines is necessary to ensure a speedy delivery of a vaccine to the Australian community,” Vincent said.

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