The owner of Priceline, Australian Pharmaceutical Industries Ltd (ASX:API) has warned its 2011 result will be impacted by the Queensland floods, difficult trading conditions in the pharmaceutical industry and government changes to the Pharmaceutical Benefits Scheme.
Last week the company said its Ipswich distribution centre will be prevented from re-opening for up to six months because of flood damage.
Yesterday chairman Peter Robinson told shareholders that a significant amount of stock held at the centre has been damaged, though the company does have insurance for inventory, assets and business interruption.
Australian Pharmaceutical Industries will announce its half year result in April.
In the year to 31 August 2010, Australian Pharmaceutical Industries booked a $22.6 million net profit.
API Price at posting:
42.0¢ Sentiment: None Disclosure: Held
