Sigma builds and re­wards

Pharmacy Daily - - FRONT PAGE -

SIGMA Health­care yes­ter­day an­nounced a strong group building move with the ac­qui­si­tion of MPS, de­scribed as Aus­tralia’s largest provider of dose ad­min­is­tra­tion aids to the aged care sec­tor and com­mu­nity phar­macy across Aus­tralia (W Break­ing News yes­ter­day).

The an­nounce­ment co­in­cided with the re­lease of Sigma’s half yearly re­sults.

Company ceo Mark Hooper said MPS was a nat­u­ral and com­pelling ad­di­tion for the company, and en­joyed a mar­ket share of al­most 20% - “al­most three times that of its near­est com­peti­tor”.

“We see tremen­dous op­por­tu­nity to not only take a lead­ing po­si­tion in the dose ad­min­is­tra­tion mar­ket, but to achieve fur­ther growth in what re­mains a very frag­mented mar­ket,” he said.

MPS will draw prod­uct, ser­vices and sup­port from Sigma’s dis­tri­bu­tion cen­tres across Aus­tralia, and pro­vided a model that com­ple­ments the Sigma Hospi­tal Ser­vices and com­mu­nity brands, Hooper added.

The half yearly re­sults an­nounce­ment high­lighted a 14.6% in­crease in re­ported earn­ings be­fore in­ter­est and tax (EBIT) to $42.8 mil­lion. The company’s re­ported net profit af­ter tax jumped 16.7% to $29.7 mil­lion, de­spite a 6.1% de­cline in over­all rev­enue to $2.02 bil­lion. The de­cline was at­trib­uted to “a com­bi­na­tion of the pull back in sales of the low mar­gin Hep­ati­tis C medicines, the exit of a non­com­pli­ant branded cus­tomer group, and gen­eral softer con­sumer sen­ti­ment”. Ad­just­ing for hep­ati­tis C drug pull back, the company said sales rev­enue was down 1.4%. Re­turn on In­vest­ment Cap­i­tal was posted at an en­vi­able 16.1%. Share­hold­ers will re­ceive 2.5 cents per share div­i­dend, payable on 5 Oct, with prom­ise of a very pos­i­tive out­look for FY19 to emerge from “a pipe­line of ini­tia­tives”.

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