Priceline owner lowers profit forecast

Australian Pharmaceutical Industries says consumers are spending less, and it has downgraded its annual profit expectations.

The operator of Priceline pharmacies and health and beauty stores has lowered its profit growth forecast as customers have been spending less.

Australian Pharmacuetical Industries now expects its net profit for the 2016/17 financial year to be about five per cent higher than in the prior year, down from its previous forecast of an increase of at least 10 per cent.

Chief executive Richard Vincent said the number of transactions in the company's retail network had grown and new store openings were on track, but consumers were spending less per shop and were buying lower value items.