SIGMA Healthcare CEO Vikesh Ramsunder (pictured) yesterday pledged that he will grow sales revenue and meet targets for the group's 300 Amcal and 150 Discount Drug Stores (DDS) members over the medium term.
"This is an exciting time for Sigma," said Ramsunder, speaking to a gathering of more than 200 delegates at the 2023 Sigma Supplier Forum, held at the Glasshouse in Melbourne.
"The recent investment in our national distribution centre (DC) network shows we are ready to not only service the new Chemist Warehouse contract (PD 06 Jun), which begins in Jul 2024, but most importantly all of our existing customers and new brand members in the coming years,'' he told the Forum delegates.
"We have simplified our business, which has already delivered 10% productivity gains.
"From next year, we will begin to accelerate our roll-out of private and exclusive label products, which will not only appeal to our price-conscious customers but also offer better margins for our pharmacies and Sigma."
The company's recent strong half-year results released in Sep (PD 20 Sep), which showed 7.5% revenue growth (like-for-like) and a 99% delivery in full to customers in the year to-date, was "good progress in delivering better results for member brands".
Aaron Ford, Chief Logistics Officer, talked about how Sigma is leveraging its investment in automation, facilities and technology to provide a fast, accurate flow of medicines and other pharmacy products to customers right across Australia.
"The processes and capability we've focused on and demonstrated over the past 12 months, puts Sigma in a very strong position to absorb the additional volume for Chemist Warehouse in 2024 for the benefit of all Sigma customers," Ford explained.
Kirsty Davis, Sigma's Chief Commercial Officer, told delegates that Sigma was excited by its new omnichannel and digital sales growth strategy to support its branded stores, as well as upcoming enhancements to the Sigma Connect portal.
"Sigma is focused on operational support for our franchise partners to deliver on our compliance promise," Davis said.
"We are also committed to ensuring there is a match between supply and demand metrics to minimise waste and improve returns,'' she added.
Sue Price, Sigma's Head of Merchandise and Marketing, was optimistic explaining that Sigma's plans for private label expansion are "progressing well in its customer-led operating model, and we expect to generate improved margin growth for both Amcal and DDS stores".
"We will also expand our promotional marketing reach, both B2B and B2C, as we focus on our two key retail brands." JG
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