Distribution centres in Shepparton, Newcastle and Launceston to close.
Sigma Healthcare has this morning released its results for the year to 31 January 2019, with revenue down 2.9% to $3.98 billion and net profit after tax declining more than 33% to $37 million.
CEO Mark Hooper highlighted details of the company’s “Project Pivot” business transformation program, which is currently under way. The diagnostic review by consulting group Accenture has identified more than $100 million in “efficiency gains” over the next two years.
Hooper said the program would “rebase Sigma’s operations to a more efficient cost base with greater capacity for growth following the end of the contract with MyChemist/Chemist Warehouse in June 2019”. A large proportion of the cost savings come from extracting costs incurred to deliver services to Chemist warehouse, but additional savings will come from a restructure within Sigma and changes within the company’s distribution centre network.
Hooper confirmed that Sigma’s Shepparton, Newcastle and Launceston distribution centres would close in the second half of 2019, along with staff cuts at the company’s ongoing distribution centre network.
He said Project Pivot would free up capacity for growth at the company, confirming guidance of $55m-$60m EBITDA for FY20.
More details in tomorrow’s issue of Pharmacy Daily.
