Green Cross Health has lifted its net profit after tax to $16 million, despite what it described as a challenging business and healthcare environment. The company, which operates Unichem, Life Pharmacy, and New Zealand’s largest GP network, had posted $11.8 million a year earlier.
Financial Reporting Highlights Cost Management Strategy
Green Cross Health reported to the NZX on Thursday that “inflationary pressures, insufficient government funding and constrained consumer spending” had impacted its operations. The company credited its improved results to “a focus on cost control and evolving the operating model.” Chair Kim Ellis cautioned that the company remained wary about consumer sentiment and the pace of economic recovery.
Trading Outlook Signals Steady Performance
The company also offered a cautiously optimistic outlook for the start of the new financial year. It said it expected trading performance for the first six months to be “in line with the first six months of the reported period.” Shareholders will receive a final dividend of 2.75 cents per share.
Green Cross Health has seen its share price fall 23 cents to 78 cents over the past year, the brand is listed on the NZX since 2000.
Pharmacy Division Expands Services and Store Footprint
Green Cross Health continues to expand its pharmacy network and service offerings. Chief executive Rachael Newfield highlighted the launch of the “care and advice health hub” during the reporting period.
Introduced in Unichem and Life pharmacies, the hub offers services such as vaccinations, blood pressure checks, emergency contraception, erectile dysfunction support, and stop smoking services.
The group expects to have 200 “care and advice health hub”-branded pharmacies operating by the end of the calendar year.
Revenue in the pharmacy division reached $370.4 million, with an operating profit of $21.5 million. The company added one new pharmacy to its network, bringing the total number of stores to 328.
According to the report, Unichem and Life pharmacies administered over 326,000 vaccinations—a 2% increase from the prior year—while same-store prescriptions rose 4%. However, same-store retail sales dropped by 9%, reflecting “retail trading headwinds.”
The company also launched a new store concept, Beauty by Life, under the Life brand to strengthen its retail presence. The concept, introduced at Life Pharmacy Newmarket in November, blends new product ranges with beauty services and will be expanded to additional sites in the coming year.
Digital Infrastructure Investments and New Fulfilment Partnerships
Green Cross Health upgraded Life Pharmacy’s e-commerce platform, enabling customers to browse real-time stock availability and access click-and-collect services in addition to physical store improvements. The company also partnered with Uber Eats to offer on-demand delivery at 149 pharmacies.
Medical Division Maintains Scale Amid GP Shortages
Green Cross Health’s medical division, comprising 65 The Doctors medical centres, reported revenue of $153.4 million and an operating profit of $19.5 million. The group has 416,500 enrolled patients, the largest patient base of any general practice group in New Zealand.
Green Cross Health continues to advocate for policy reforms to expand pharmacists’ roles, aiming to maximise patient access to additional health services and alleviate pressures on other areas of the health system. The company is actively engaging with policymakers to support the extension of pharmacists’ scope of practice.