Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn
About

News

Sigma says FY2019 outlook more positive

Trevor Chappell  |  07 Sep 2017Text size  Decrease  Increase  |  

Page 1 of 1

MELBOURNE - [AAP] Pharmacies and drug supplier Sigma Healthcare (ASX: SIG) says the outlook for fiscal 2019 is more positive after a challenging first half in the current fiscal year.

Sigma has lifted its half-year net profit the six months to July 31 by 17.4 per cent to $27.8 million, but sales fell amid challenging industry conditions.

Underlying earnings before interest and tax (EBIT) fell 8.7 per cent.

Sigma said sales were impacted by a pull-back in sales of low-margin Hepatitis C medicines and softer consumer sentiment.

Adjusting for the lower Hep C sales, sales revenue was down 1.4 per cent.

Chief executive Mark Hooper says a number of factors point to a more positive outlook for fiscal 2019.

"The signs are good that momentum is swinging back in our favour," Mr Hooper said in statement on Thursday.

"This is supported by a combination of our pipeline of pharmacy brand members, service improvements and efficiency gains from Project Renew and the opening of our Berrinba distribution centre in Queensland, along with the ramp-up of new service contracts in hospitals and logistics."

Sigma confirmed its guidance, provided on August 11, of underlying EBIT of $90 million for the full 2018 fiscal year.

It also has agreed to buy dose administration services provider Medication Packaging Systems (MPS) for $18.5 million.

Mr Hooper said the acquisition fits in with the company's strategy of becoming a broader healthcare company and MPS provided another avenue of growth.

SIGMA LIFTS H1 PROFIT AMID CHALLENGING CONDITIONS

* Half-year net profit up 17.4pct to 27.8m

* Sales revenue down 6.1pct to $2.02bn

* Interim dividend maintained at 2.5 cents, fully franked

 

AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.