Sigma’s mixed results

DDS, discount drug store, pharnacySigma Pharmaceuticals, owner of pharmacy retail brands Discount Drug Store, Amcal and Guardian, has reported a four per cent fall in profit as the pharmacy wholesale and distributor continues to reduce its dependence on government-regulated business.

Net profit fell 4.3 per cent to $50.5 million for the year ended January 31, from $52.8 million over the same period a year earlier, because of a one-off accounting adjustment.

Still, underlying earnings before interest and tax jumped 13.7 per cent to $89.1 million, while revenue from continuing operations rose 10.2 per cent to $3.46 billion.

“We have seen growth in underlying earnings for the past two years and we are very confident we can deliver EBIT growth of at least 5 per cent per annum for the next two years,” said Sigma’s CEO and MD, Mark Hooper.

“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,” said Hooper.

Sigma has increased its final dividend to 3.0 cents per fully franked share.

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