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The drug distributor and pharmacy retailer today reported net profit of $A15.213 million ($US10.16 million) for the 12 months to August 31.
In its last prior full year report, to April 30, 2007, API reported a loss of $11.3 million, before a loss of $2.598 million in the four months to the end of August, 2007.
API chief executive Stephen Roche said today the second half of the year to August had been more difficult than the first.
"The performance was very pleasing, particularly in light of the slower retail trading environment and managing the implementation of the largest ever pharmaceutical pricing through the PBS Reforms in July and August," he said.
Mr Roche told an analysts briefing the company expects further earnings growth in the year ahead, but a challenging economic environment requires a continued focus in costs.
"We do need to wait for some significant measurements, i.e. Christmas, before we determine API's longer position," he said.
"We are absolutely clear on where we want to be in two years, and I can assure you it is better than we are now."
API is continuing its transfer of its company-owned Priceline stores to Priceline Pharmacy franchises, and plans to grow store numbers from the current 300 to 400 during 2010.
Priceline has undergone a rebranding to increase its focus on health products, and its new direction will prove more appealing to consumers, Mr Roche said.
API's overhaul of its supply chain and implementation of three major distribution centres in Melbourne, Sydney and Brisbane has progressed well, he said.
The Melbourne facility is expected to be operational by mid-2009, and when the restructure is completed in fiscal 2011 it will deliver at least $10 million in savings.
Annual savings from implementation will now be more than the initial estimate of $18 million, Mr Roche said.
Revenue in API's pharmacy division was up 22 per cent on the previous comparable period to $2.47 billion, but increases in transport costs of 15 per cent due to higher fuel and labor costs proved challenging, the company said.
API declared a final dividend of one cent fully franked to be paid per share on December 15.
Further outlook will be provided at the company's annual general meeting on January 20.
At 1400 AEDT API shares were up one cent at 52.5 cents.
(AAP)
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