PD breaking news – Sigma cracks $100 million in “underlying profit”
Sales to Sigma-branded pharmacies up 8.2% following heavy investment in national retail brands.
Sigma Pharmaceuticals has just released its results for the year to 31 January 2017, with ceo Mark Hooper saying the underlying profit figure of $100.2 million, an increase of 12.4%, was the result of a “consistent execution of our strategy”.
However the reported EBIT figure rose just 1.1% to $80.9 million, once the previously announced $20 million in extraordinary items was taken into account. That included an $11.4 million insurance premium recovery claim and $8.3 million relating to a doubtful debt owed by a “single pharmacy group”. The group was not named in the results announcement.
Hooper said these were both “one-off impacts reflecting historical issues” with Sigma’s strategy going forward focusing on diversifying the business by seeking opportunities to grow non-PBS earnings.
Revenue rose 26.2% to $4.4 billion, including the impact of the new hepatitis C medicines. Hooper said non-PBS medicines now account for 55% of volume distributed, and 36% of total revenue excluding hepatitis C.
Sigma has invested heavily in its pharmacy network, with like-for-like sales to Sigma branded pharmacies up 8.2% for the 12 month period. “We have leveraged our scale to invest significantly in our national retail brands and patient focussed programs over the past few years, and we now have the most compelling offer in the market,” Hooper said.
He also confirmed that shareholders will be asked to approve a change of company name to Sigma Healthcare Limited on 3 May 2017, with the ASX ticker to also change from SIP to SIG.
More information in tomorrow’s issue of Pharmacy Daily.
The above Breaking News Alert was sent to Pharmacy Daily subscribers on 23 Mar 17
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