Sigma confirms forecast

SIGMA Pharmaceuticals ceo Mark Hooper yesterday reaffirmed that the company was expecting earnings growth of at least 5% this year, with the company recording $100.2m in underlying profit for the year to 31 :an (W breaking news).

Hooper said the result showed Sigma had “consistently delivered on its promises,” with shareholders receiving a 3c per share dividend, while “for our pharmacy customers, it means Sigma’s continued ability to invest in programs to support their success”.

He said Sigma was continuing to diversify its earnings streams away from the PBS, with non-PBS medicines now accounting for 55% of items distributed by the firm.

Sigma is targeting a 50/50 revenue split between PBS and non-PBS items, but still has a way to go, with PBS Items, excluding the expensive hepatitis C medicines, still accounting for 64% of revenue.

Hooper said the overall result reflected ongoing investment in the company’s pharmacy operations.

“We have leveraged our scale to invest significantly in our national brands and patient focussed programs over the past few years, and we now have the most compelling offer in the market.”

Other bright spots in the result were the strong performance of the China market, which has seen sales more than double the company’s initial expectations.

Hooper confirmed the company was now looking to push into the Hong Kong market, to leverage off momentum already established in mainland China.

Sigma is also continuing to invest in its distribution network, with a new site at Berrinba in South East Queensland expected to be fully operational next year, while Hooper confirmed a new $55 million investment in a new distribution centre in Canning Vale, WA.

Construction will commence shortly on the site which “will have capacity to meet the long term needs of our business,” Hooper said.