PHARMACY wholesaler, Sigma Healthcare, is optimistic about the future with CEO, Mark Hooper, reporting the company is "in a prime position to accelerate growth" in the 2022 Financial Year.
In a statement to the Australian Securities Exchange (ASX) this morning, the company reported "strong growth through the second half of FY21, leading to the company providing FY21 Underlying Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of around $80 million", which is up by more than 35% on FY20.
Sigma also confirmed it had reached an agreement with Westpac to extend its $250 million receivables purchase agreement for another three-year term.
Hooper said Sigma had proved resilient in delivering against expectations despite the challenges caused by the COVID-19 pandemic.
"The business continued to perform strongly through the second half, with sustained momentum underpinning our FY21 guidance and confidence in FY22," he said.
"Our ability to leverage investments already made will also see Underlying Return on Investment Capital return to double digits in FY21, and we continue to expect to achieve our previously stated target of $100 million underlying EBITDA by FY23."
Sigma Chief Financial Officer, Jackie Pearson, said the extension of the group's agreement with Westpac would ensure the business meets its funding requirements including the final stages of its "transformational investment program and mid-month peak receivables".
Sigma also reported its net debt was "around $50 million at 31 Jan and is expected to peak in the second half of FY22 in line with the completion of the capital investment cycle, before receding from that point as a result of strong operating cash generation".
The company is due to release its FY21 results on 23 Mar.
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