Sigma’s profit slumps
Pharmaceuticals group Sigma Healthcare has seen shares slump after reporting first-half profit dropped by more than 50 per cent.
Net profit for the six months to July 31 fell 51.8 per cent to $13.4 million, partly due to restructuring costs following the loss of its contract to supply Chemist Warehouse.
The company was impacted by restructuring costs of $6.1 million along with a two per cent fall in revenue.
Speaking about the loss of Chemist Warehouse, Chief executive Mark Hooper said: “We need to use the Chemist Warehouse exit as an opportunity for a top-to-bottom review of the whole business and look for opportunities to accelerate what we have been doing to grow revenue streams that are less reliant on the pharmaceutical benefits scheme.”
Hooper said that investment in new distribution infrastructure in NSW, Queensland, WA and SA is on schedule and under budget, and Sigma has hired financial services firm Accenture to help oversee its continued restructure.
Mr Hooper maintained 2018/19 guidance of $75 million in underlying revenue but Sigma shares fell in morning trade.