MENU

Why Australian Pharmaceutical Industries Ltd shares are falling on its half-year results

Investors have reacted to disappointing results for the half-year to February 28 2018 for health and beauty services company Australian Pharmaceutical Industries Ltd (ASX: API), with its share price down 2% to $1.47 at the time of writing.

Australian Pharmaceutical Industries reported a drop in statutory NPAT of 14.4% to $24.9 million, with revenue flat at $2 billion and dividends maintained at 3.5c per share fully-franked.

Share prices for Australian Pharmaceutical have been volatile in the past 12 months, trending down from $2.03 at this time last year.

The company blames “suppressed retail conditions” for the drop in earnings, and similar conditions have affected others in the sector, with peer Mayne Pharma Group Ltd (ASX: MYX) reporting a 17% decrease in revenue, 82% drop in reported EBITDA and a net loss after tax of $174.2 million for the six months to December 31, 2018.

Elsewhere in the healthcare sector Ramsay Health Care Limited Fully Paid Ord. Shrs (ASX: RHC) shares could be in buy territory as Ramsay ploughs ahead on its global expansion strategy.

Healthscope Ltd (ASX: ASX: HSO) is also one to watch with its pathology services business going great guns.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now