AfroCentric reports profit boost from drug deliveries
Group profit rose about a fifth in the year to end-June, with the company’s pharmacy delivery businesses faring well amid Covid-19
Administration and health management services company AfroCentric has reported a profit boost from pharmacy deliveries during he year to end-June.
Group profit after tax rose 19.1% to R458.6m to end-June, with its health care retail division, which includes courier Pharmacy Direct and medicines wholesaler Curasana, reporting that profit after tax more than doubled to R178.9m.
“Given the more heedful attention paid by patients reliant on chronic medication during lockdown, not least an obvious desire to stay healthy in general, the convenience of group deliveries during lockdown, at work or home, proved extremely valuable to those dependent on their chronic medications and other requirements,” the group said.
AfroCentric’s brands include medical aid company Medscheme, with the group saying that its investment in IT systems, and cost control had paid off, but it is expecting to come under pressure as Covid-19 prompts job losses and wage cuts.
“While health scheme memberships were expected to fall dramatically, we are seeing members doing everything in their power to retain their existing health cover, not only for their own protection as breadwinners, but also for the health needs of their families,” the group said.
In morning trade on Monday AfroCentric’s share was up 8.88% to R3.80, having risen 12.09% so far in 2020.
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