GXH - Green Cross Health (formerly PHB - Pharmacybrands)

[nztx]

If there's a significant downturn - then wouldn't dividend be the first to go - as seen for 3 interim & FY periods ? ;)

It has happened before .. then what happens to the SP in low volumes traded of a stock many wouldn't keep on the radar ?

Given the composition of the share register - it's unlikely that any of the major insto's would take a look in

[RRR]

They missed dividend only in FY2021 - that was due to corona. Most companies cancelled dividend due to corona.

In retrospect, they did just fine. They acquired more medical centres and pharmacies using the money not given out as dividends!

Their business do well even in recessions - people still need to see their doctor and get prescriptions no matter recession or no recession :)

I like businesses which are not in the radar of institutions (like BGR, STU):)

[nztx]

They missed dividend only in FY2021 - that was due to corona. Most companies cancelled dividend due to corona.

In retrospect, they did just fine. They acquired more medical centres and pharmacies using the money not given out as dividends!

Their business do well even in recessions - people still need to see their doctor and get prescriptions no matter recession or no recession :)

I like businesses which are not in the radar of institutions (like BGR, STU):)


If you look further, no dividend in

Jun 20
Dec 20
Jun 21

https://www.nzx.com/instruments/GXH/dividends

[RRR]

If you look further, no dividend in

Jun 20
Dec 20
Jun 21

https://www.nzx.com/instruments/GXH/dividends

June 20 - no dividend (due to corona uncertainty - they still made a decent profit)
Dec 20 - as above
June 21 - as above - they made profit - 16 million npat

FY22 - back to normal, half yearly dividends reinstated, corona benefitted them, pharmacy business growing again. Profit after tax 24 million

[bull....]

I see Wilton man up for the board

Craig Brockliss is currently CEO of the Wilton Capital Group of companies and has more than 20 years’ experience in business, property and private equity investing. Wilton has significant investment interests in New Zealand, the United States and in the UK.
Wilton Capital has its origins in the pharmaceutical logistics markets in New Zealand and Australia before diversifying into other investments in 2001.
Wilton is currently the third largest shareholder in Green Cross Health.

If he gets elected I hope he can push there roll out of medical centre's along.. growth part of the business if you tie in pharmacy with it

[bull....]

very pleasing to see them talking about increased aquisitions

Medical continued its upward earnings trend assisted by eight acquisitions. Andthere is a healthy acquisition pipeline in place for the year ahead.

The FY22 earnings performance has left the company a strengthened balance sheetwith no net debt at parent level and therefore well-positioned for shareholderdistributions and acquisitions

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GXH/395860/375245.pdf

massive opp the medical centre expansion with an attached pharmacy

[RRR]

GXH didn't drop at all in the last 6 months...
Onwards and upwards - still very cheap with the board that has skin in the game :t_up:

[RTM]

26/11/2021 GXH reported their half year profit. So we might hear something this week ?

[bull....]

wonder if greencross having staffing issues?

Where have all the pharmacists gone? One pharmacy owner forced to take 'extreme measures'

https://www.stuff.co.nz/business/130542828/where-have-all-the-pharmacists-gone-one-pharmacy-owner-forced-to-take-extreme-measures

[RTM]

26/11/2021 GXH reported their half year profit. So we might hear something this week ?

Well...they didn't disappoint...even if they did leave it a wee bit late in the day.
Happy with this finish to the week.
Have a good weekend everyone.

https://www.nzx.com/announcements/403104

[nztx]

https://businessdesk.co.nz/article/business-of-health/who-owns-our-gps-you-might-be-surprised

Who owns our GPs? You might be surprised


An interesting article covering corporatisation of Kiwi GP's

[Sideshow Bob]

https://www.nzx.com/announcements/406808

Green Cross Health has become aware of speculation in the Australian media about a potential transaction to sell its Community Health division to Anchorage Capital Partners.
GXH confirms that it is currently in discussions with Anchorage Capital Partners in respect of such a transaction. There is no certainty that those discussions will result in a transaction.
GXH confirms it is in compliance with its continuous disclosure obligations.

[nztx]

Looks like the "Keep Quiet" sprung a leak somewhere :)

Which waiting room just experienced a bit of leaky symptoms ?

[Sideshow Bob]

https://www.nzx.com/announcements/407161

Green Cross Health Limited advises it has entered into an unconditional agreement to sell its Community Health division (Access Community Health and Total Care Health Services) to Australian private equity firm, Anchorage Capital Partners, for an Enterprise Value of NZ$50 million.

Access Community Health has been caring for New Zealand communities since 1927. Today, it has a staff of 3,200 and provides in-home nursing, personal care, rehabilitation, social support and household assistance to more than 33,000 people across New Zealand.

In Green Cross Health’s last financial year, the Community Health division contributed $192m to Group Revenue and $5.6m to group Operating Profit before Interest and Tax.

Green Cross Health expects to receive net cash sale proceeds (after deduction of transaction costs and subject to post-completion adjustments) of approximately NZ$30 million, including $2 million on account of pre-completion dividends from the Community Health division to be paid shortly after completion.

The sale is expected to be completed in the current financial year (ending 31 March 2023).

[Elles]

Doesn't seem very wise if it contributed $5.6m profit a year and sale proceeds are only $30m? Could someone explain why they would sell? And how they got from $50m to $30m? I'm confused.

[nztx]

Doesn't seem very wise if it contributed $5.6m profit a year and sale proceeds are only $30m? Could someone explain why they would sell? And how they got from $50m to $30m? I'm confused.


possibly a good reason why they may have considered the Offer on the table was too good to ignore

Wonder what that was ?

Increasing Labour costs ?

3200 staff is a lot to have on board

Let's face it - the Operating Profit before Tax & Interest in relation to turnover for the division doesn't seem too high

Perhaps some degearing going on ?

[Filthy]

Could someone explain why they would sell?

I would hope it is to focus on, or fund further acquisitions in the medical division ('the doctors') and align it more closely with pharmacy. the closer those two come together, the more protections they will have against online & high street competitors like chem warehouse. so perhaps its semi-strategic.

[nztx]

https://www.nzherald.co.nz/business/only-australasian-costco-in-store-chemist-shop-majority-owned-by-kiwi-pharmacist/3CGK7ANKXVFTPAF5QNQX3DMS7A/

Only Australasian Costco in-store chemist shop majority owned by Kiwi pharmacist

Goodness - GXH must have been a good leaping stone into where he is now :)

(Premium)

[RTM]

Director Craig Brockliss seems to have a lot of faith in this company. No other directors tho ?

https://www.nzx.com/companies/GXH/announcements

Disc: Holder

[jonu]

Special divvy 28 cents. Lovely jubbly!

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GXH/409438/392008.pdf

[nztx]

VG .. see some smarty has a sell offer @ $2 ;)

[RRR]

Excellent for current shareholders...:t_up::t_up:

[kiwical]

Newbie question. When the share price went from $1.35 to $1.69 then back to $1.35 again over a space of a few days why did that occur? Is it people who buy, collect dividend, then sell again?

[winner69]

Newbie question. When the share price went from $1.35 to $1.69 then back to $1.35 again over a space of a few days why did that occur? Is it people who buy, collect dividend, then sell again?

Would appear to be the case

[RRR]

$5 pharmacy prescription fee scrapped - a huge positive for GXH

[Bill Smith]

Except Chemist Warehouse et. al. can now offer a $5 voucher for every prescription. That might draw even more into their stores.

[DigIn]

Possibly. But not every prescription cost $5. Under 14's, repeats and people or families who have had more than 20 items are free anyway. Will they want to give them vouchers too? More difficult to market?

[kiwical]

Yeah I dunno. If you have a prescription you just go and get it. $5 or not I thought? Be a saving personally when you get a prescription, but not sure how it will make a difference to GXH profitability.

[RRR]

Except Chemist Warehouse et. al. can now offer a $5 voucher for every prescription. That might draw even more into their stores.

If they do that, will be anti-competitive and they will be sued if they do that!

GXH pharmacy business is growing again - chemist warehouse were supposed to decimate their pharmacy business - didn't happen..GXH is now stronger than ever..

Kiwical - $5 is significant money for many..$5 is per medication - if several medications are prescribed expense adds up to a significant amount..just imagine the situation for patient who are on these medications long term. Prescriptions are now dispensed every month - previously they used to dispense 3 months supply..

GXH dont get the $5 fee - but the likes of CWH were waiving the $5 fee which were leading to loss of customers for pharmacies owned by GXH

[kiwical]

Ah I see. Thanks for the clarification. Yes, I read a media release which said in some areas customers were indeed not picking up all their prescriptions due to not being able to afford the fee(s). I see National has stated that if they get into power they will reintroduce it. Kind of strange to be so firm. This move should make a large number of voters happy, for little cost in the big scheme of things.

[Bill Smith]

If they do that, will be anti-competitive and they will be sued if they do that!

GXH pharmacy business is growing again - chemist warehouse were supposed to decimate their pharmacy business - didn't happen..GXH is now stronger than ever..

Kiwical - $5 is significant money for many..$5 is per medication - if several medications are prescribed expense adds up to a significant amount..just imagine the situation for patient who are on these medications long term. Prescriptions are now dispensed every month - previously they used to dispense 3 months supply..

GXH dont get the $5 fee - but the likes of CWH were waiving the $5 fee which were leading to loss of customers for pharmacies owned by GXH

Doubt it. If Chemist Warehouse advertised a "free" voucher with every prescription there is no element of anti-competitive behaviour. Quite the opposite.

[nztx]

CWH might have rename their Free $5 Giveaway, if they intend continuing dishing it out :)

[nztx]

Holy **** .. Man jump overboard reported in Sep 2023

https://www.nzx.com/announcements/417925

CFO wave final good byes in December


Backpedal to Feb 2023 -


Green Cross Health sold Access Community Health division to Anchorage Capital Partners on 28 February 2023.


Time yet to start selling some more bits or whole kaboddle for another large divie .. or too soon ? ;)


Must be time to roll out the next bundle of 2023 reports soon

[Sideshow Bob]

https://www.nzx.com/announcements/422576

Result Summary:
Operating Revenue of $250m, up 1%
Operating Profit (EBIT) of $14.9m, down 17% due to reduced higher-margin COVID-19 activity
Net Profit After Tax Attributable to Shareholders of $5.6m, down 21%1
Pharmacy Operating Revenue up 1% and Operating Profit down 25% to $8.7m
Medical Operating Revenue up 1% and Operating Profit down 21% to $7.3m
Investment in growth of $7.9m in three new medical centres and eight site refurbishments; two further medical centres acquired post interim balance date
2.5cps interim dividend declared, to be paid on 20 December 2023.

[nztx]

https://www.nzherald.co.nz/business/chemist-warehouse-to-merge-with-aussie-company-in-750m-proposal/AHSDD5RUENGNJNXVAJ6CSKAHAY

Chemist Warehouse to merge with Aussie company in $750m proposal



Chemist Warehouse will merge with a big Australian company and create a new entity worth almost $10 billion under a proposed deal.

Melbourne-based Sigma Healthcare today said it wanted to merge with the aggressive pharmaceutical retailer.

But the deal will need to win approval from watchdogs including the Overseas Investment Office.

Chemist Warehouse has hundreds of stores across Australia and New Zealand, with an estimated 600 in Australia alone.

Sigma Healthcare’s retail brands include Amcal+ and it also has aged care services.

Sigma aims to seal the deal with $752m cash and Sigma shares.


The Competition just expressed it's desire to morph into a larger Gorilla :)

[nztx]

Not a squeak out of the Boardroom for 2024 to date

No further spare parts on the block or hocked off .. no special dividend this time round

March 24 FY report due at month end while the SP wallows around the $ Buck mark

No news - good news ?

Wil, it be a 2.5c ; 3.0 c or 3.5c being spat out mid year or a few verses on what didn't happen ? :)

Wonder how things are going with being in the same pool as the noisy Aussie Pharmacy Gorilla ? :)

[winner69]

Pretty solid result

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GXH/432004/419816.pdf

[percy]

Pretty solid result

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GXH/432004/419816.pdf

I thought it was a very poor result.
Result Summary
•Operating Revenue1 of $503.9m, up 2%
•Operating Profit (EBIT)1 of $31.8m, down 7% due to inflationary pressures, lower retail spending and reduced higher margin COVID-19 activity
•Net Profit After Tax Attributable to Shareholders1 down 20% to $12.0m
•Pharmacy Operating Revenue up 1% and Operating Profit down 8% to $19.3m
•Medical Operating Revenue up 5% and Operating Profit down 8% to $15.0m
•Investment in growth of $17.9m, including seven new medical centres and one pharmacy
•2.0cps dividend declared, to be paid on 21 June 2024.

[nztx]

I thought it was a very poor result.
Result Summary
•Operating Revenue1 of $503.9m, up 2%
•Operating Profit (EBIT)1 of $31.8m, down 7% due to inflationary pressures, lower retail spending and reduced higher margin COVID-19 activity
•Net Profit After Tax Attributable to Shareholders1 down 20% to $12.0m
•Pharmacy Operating Revenue up 1% and Operating Profit down 8% to $19.3m
•Medical Operating Revenue up 5% and Operating Profit down 8% to $15.0m
•Investment in growth of $17.9m, including seven new medical centres and one pharmacy
•2.0cps dividend declared, to be paid on 21 June 2024.



Agree Percy .. T/over up and other metrics going backwards including profit and NPAT.
Looks like a huge expenses or Margin hit somewhere ?

The Dividend trend after the 28c Special in Apr 2023, from hocking off some Crystal jewels appears to be retrenching.

What the next period will show could be anyone's guess in a recessionary environment, in a goldfish bowl with other large predators and potentially another large Covid wave on us right now ..