Chemist Warehouse has announced a nearly 30% increase in profit for its half-year results.
👉 Background: Chemist Warehouse, the pharmacy chain with over 500 stores, announced late last year that it was looking to merge with Sigma Healthcare in a deal worth $8.8 billion.
👉 What happened: Chemist Warehouse has announced a nearly 30% increase in profit for its half-year results. That's despite the government's shift to 60-day dispensing, which has increased costs for pharmacies.
👉 What else: It's not too surprising of a result when taking into account that only a third of Chemist Warehouse's sales actually come from its pharmacy counter.
💡A company’s main source of revenue isn’t always the product or service it’s most known for.
💡More than two-thirds of Chemist Warehouse's sales come from the 'front of the store', not prescription medication. So, while the overall pharmacy market grew 3%, Chemist Warehouse grew 9% in like-for-like sales.
💡By optimising for over-the-counter goods, Chemist Warehouse has been able to pull market share away from its competitors and build itself into the supermarket of healthcare.
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