Pharmacy Daily | Sigma to pursue growth

SIGMA Healthcare says that having significantly improved its operational performance over the last 12 months "we are now confident in our ability to win back the trust and confidence of customers".

The company yesterday released its Annual Report for the 12 months to 31 Jan, with CEO Vikesh Ramsunder noting the year had seen Sigma simplify its business model, stabilise new systems, renew the leadership team, reduce debt, return to profit and outline a new strategy including the consolidation of its brands around the Amcal and Discount Drug Stores banners.

"While this strategy may be disruptive short term, building scale in two brands will enable Sigma to better support the brands and drive foot traffic by engaging with customers, suppliers and pharmacists," Ramsunder said.

"Moving forward, it will also help underpin our expansion into health, beauty and wellness categories, including an expanded private and exclusive label product offering, which is an important part of our longer term strategy," he added.

Ramsunder also highlighted the consolidation of Sigma's independent pharmacy offering under the PriceSave initiative which launched in Feb 2023 and now has more than 400 active members.

The shareholder update highlighted a 2.2% increase in wholesale sales to community pharmacy over the year despite the ERP implementation issues encountered early in the first half.

With those matters now in the past, "Jan 2023 data has shown positive signs, with Sigma growing sales at a rate well above average market growth rates," he said.

The revised franchise brand strategy has seen Sigma's merchandise team consolidated in the Melbourne Support Centre using a category-focused model in which each team is responsible for full end-to-end product decisions.

"The new operating model delivers a more efficient structure, an improved retail focus and incorporates Private Label in all aspects of planning and execution," the company said.

The update also highlighted the performance of the MPS Connect medication management platform which recorded a 17.5% uplift in packed patients over the year.