On Wednesday afternoon it was the turn of Australian Pharmaceutical Industries Ltd (ASX: API) shareholders to gather for their annual general meeting.
Of the many things discussed by CEO-elect Richard Vincent, chief among them was news about how the business was tracking so far in FY 2017.
He revealed that the company behind the Priceline, Soul Pattinson, and Pharmacy Advice brands expects to report a half-year profit of $29 million, up 14.6% on the prior corresponding period.
Whilst this is a solid result, it is a touch slower than last year's profit growth of 18.1%. This may explain why its shares sank slightly after the news was revealed.
Total sales growth in the Priceline network year to date is 3.6%, with like-for-like sales increasing 1.4% up to the Christmas period.
Since then however like-for-like sales growth has been slower than normal, coming in at just 0.6% for the week ending January 14.
After years of meteoric growth, I can't say I'm too surprised to see Priceline's like-for-like growth slowing a touch. But this level of growth is quite a concern.
When judging retail shares the key metric I look for is like-for-like sales growth. At the current level I wouldn't be in a rush to invest in its shares.
Right now I would class Australian Pharmaceutical Industries as a hold. I would suggest investors wait until there is a marked improvement in its like-for-like sales growth before making an investment.
Its rival Sigma Pharmaceutical Limited (ASX: SIP), which operates the Amcal and Chemist King brands, last reported like-for-like sales growth of 7.2%.
With both shares trading on similar earnings multiples, Sigma is starting to look like the more attractive option in my opinion.
All being well Australian Pharmaceutical Industries' new CEO will be able to reignite the Priceline brand. But until then I'm going to sit this one out.
