Operating profits at the company that operates the McCabe pharmacy group last year increased by 40 per cent to €7.59 million.
According to accounts for Behey Ltd, the group enjoyed the increase in operating profits after revenues increased by 7 per cent from €54.29 million to €57.87 million in the 12 months to the end of January 31st last year.
The family-owned business, led by Sharen McCabe, operates 20 pharmacies across the country with the majority located in Dublin, while the group also runs the Radisson Blu Farnham Estate hotel in Co Cavan.
The figures show that the group recorded a modest pre-tax loss of €74,520 after interest payments of €4.97 million and non-cash depreciation and amortisation costs of €2.7 million are taken into account.
The loss last year compares to a pre-tax loss of €3.4 million in fiscal 2012.
'Turnover increased'
Numbers employed at the group last year increased by 24 to 454 and the group's staff costs last year increased from €10.1 million to €10.8 million.
According to the directors’ report on the performance of the pharmacy outlets, “turnover increased due to a good performance from the retail side of the business and increased volumes in the dispensary. Gross margins also improved due to careful purchasing and management of direct costs”.
The directors state that the outlook for the pharmacy sector in 2013 and beyond will be extremely challenging.
Challenging outlook
The directors point to imminent introduction of generic reference pricing legislation; depressed prescription volume due to increases in the GMS item levy and reductions in the number of medical cards in circulation and continued private prescription pricing competition.
Other key factors cited by the directors in the challenging outlook for the pharmacy sector include the continued review and reduction of the fees that pharmacies receive from the HSE for dispensing medicines and the escalating costs of maintaining pharmacies to comply with regulations.
On the performance of the Radisson Blu hotel in Co Cavan, the directors state: “Farmham continued to perform well and its revenues increased . . . This is being driven by improvements in occupancy levels”.
The group’s bank loans and overdrafts totalled €72 million and the directors state that they “are working closely with the group’s financiers with whom there is a positive working relationship”.
