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Sigma posts mixed annual results

SigmaSigma Pharmaceuticals has reported a four per cent fall in net profit and double-digit increase in earnings before interest and tax (EBIT), for fiscal 2015.

Net profit fell 4.3 per cent to $50.5 million for the year ended January 31, 2016 from $52.8 million over the same period a year earlier, because of a one-off accounting adjustment. The decline came as the pharmacy wholesale and distributor continues to reduce its dependence on government-regulated business.

Underlying EBIT jumped 13.7 per cent to $89.1 million, while revenue from continuing operations rose 10.2 per cent to $3.46 billion.

“We’ve invested strongly in the past few years to support our strategy of broadening our earnings base and the benefits are now starting to materialise in the form of improved performance for our pharmacy brand members and shareholders,” Sigma CEO and Managing Director Mark Hooper.

“We have continued to develop comprehensive service programs clearly aimed at supporting the future of our pharmacy brand members by helping them transition to a more service oriented model,” he said. “We are now confident that we have a pipeline of growth in place to produce at least 5 per cent per annum EBIT growth for the next two years, showing the outlook remains very positive for Sigma.”

Branded pharmacy sales through Sigma rose 17.9 per cent. These include Amcal, Guardian, Discount Drug Stores, Pharmasave and Chemist King. Sigma, Australia’s largest branded pharmacy, leads market consolidation with over 700 branded pharmacies.

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