SIGMA Healthcare is expecting to report a 10% to 15% increase in its underlying earnings before interest tax depreciation and amortisation (EBITDA) for the year to 31 Jan.
The updated guidance marks a significant shift in the wholesaler's fortunes in the final weeks of the year, having previously warned shareholders of a potential 10% decline in its underlying EBITBA compared with the 2021 financial year (PD 06 Dec 2021).
"The improved financial performance primarily reflects the rapidly evolving COVID-19 environment and the sudden increased demand for rapid antigen tests as a diagnostic tool, which resulted in significant volume growth in the month leading up to our 31 Jan financial year close," the company said.
Despite the strong earnings growth, Sigma anticipates it will deliver a $5 to $10 million loss for the year, largely associated with a software as a service (SaaS) accounting policy change.
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