Pharmacy Daily | Sigma brands outperform market

PHARMACEUTICAL wholesaler, Sigma Healthcare, has reported a 133.6% increase in net profit after tax (NPAT) for the 2021 Financial Year, with the group's pharmacy brands performing ahead of average market growth rates.

Releasing its financial results to the Australian Securities Exchange (ASX) this morning, Sigma revealed like for like wholesale sales across its Amcal, Discount Drug Stores, Guardian, Pharmasave, Chemist King and WholeLife pharmacy networks were up 9%, building on the 11.7% growth reported in 2020.

Sigma CEO, Mark Hooper, described the FY21 figures as "a milestone result" for the company.

"We've delivered on our promise of transforming our business and improving our earnings as we enter a period of sustainable growth and improved returns for shareholders," he said.

"Significantly, Sigma has navigated the challenges of the COVID-19 pandemic without any reliance on direct government support such as JobKeeper.

"We have the building blocks in place to underpin our target of 10% per annum growth in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) for the next two years and around $100 million by FY23."

The company reported total sales grew by 4.8% in FY21, with Pharmaceutical Benefits Scheme (PBS) sales up 12.4% compared to market growth of 5.5%.

Sigma also saw an increase of 4.9% in over-the-counter medication sales, despite the overall market declining by 2.8%, reflecting the lower export demand and the impact of COVID-19 on some specific categories such as cough and cold and in certain pharmacy locations.

The company's net debt finished the year at $50.3 million, down from $146 million at the same time last year, reflecting the net effect of capital expenditure and the $172 million received from the sale and leaseback of two distribution centres, which were concluded during the year.

Sigma also confirmed the extension of its $250 million debt facility with Westpac.