SIGMA Healthcare says 2017/18 was a "challenging year" during which it continued to execute its long term strategy despite declining sales due to softening consumer sentiment and reduced demand for low-margin Hepatitis C drugs.
The company reported overall revenue of $4.13 billion, down 5.4% - however excluding the Hep-C medications the figure was steady year-on-year at $3.68 billion (PD Breaking News yesterday).
Gross profit dipped 1.8% to $284m and the overall net profit after tax was $55.4 million.
Like for like sales in Sigma's Amcal brand were up about 2%, and revenue from other operations including the recently acquired MPS (Medication Packing Systems) rose 8.2% to $83.5 million.
CEO Mark Hooper said MPS was seen as a strong growth opportunity, with DAAs seen as "a significant government focus area for improved medication management".
MPS is the only DAA endorsed by the Pharmacy Guild, and operates three TGA-approved facilities across the country, he said, noting that only 25% of potential customers currently use a DAA.
Other initiatives include expanding Sigma Hospital Services which has seen several recent contract wins and is now operational in Western Australia.
Hooper said Sigma was focusing on setting the foundations for the future, with ongoing investments in infrastructure including a new distribution centre in Queensland.
He said there was also a sharper focus on growing Sigma's retail pharmacy brands, while the more recent acquisition of the business of Medical Industries Australia provides the company's first foray into the distribution of medical devices and consumables to hospitals, pharmacy and aged care.
He said while small, this "provides a platform to approach a new market segment for Sigma".
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