30 Jul 2019

Green Cross Health sets out strategy for growth

11:52 am on 30 July 2019

The pharmacy and medical centre operator Green Cross Health is going to focus more on building its retail business with plans to expand its franchise.

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Photo: 123RF

The company, which operates the pharmacies Unichem and Life Pharmacy and The Doctors and Access Community Health brands, will present its strategy to shareholders at an annual meeting this afternoon.

The pharmacy operator reported a slight gain in net profit of $16 million in the year ended in March, with sales driving revenue up nearly 6 percent to $567m.

The company chair, Peter Merton, said it would tighten up its buying and selling processes with an increased emphasis on costs and margins.

It will also invest more in staff training and capabilities.

"Competition is here and it is growing, so we need to get our basics sorted," he said.

The company had completed an upgrade of its Life Pharmacy website to improve online sales and service.

He said Green Cross would also make better use of the data it had collected through its Living Rewards programme, to better market products and offers to customers.

The company also planned to increase the reach of its franchise operations with considerable opportunity to expand.

"Given there are over 1000 pharmacies in NZ and Green Cross represents 360 of them, there is still scope to grow the franchise network," Mr Merton said.

"We need to do that sensibly though, so we don't undermine our existing franchisees."

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