Sigma cuts earnings outlook due to Covid

PHARMACY operator and medical wholesaler Sigma Healthcare has slashed its annual earnings forecast, blaming the Covid restrictions after cuttings its interim loss.

With the lockdowns persisting past July and into Sigma’s second half, Sigma flagged underlying earnings growth “closer to 5 per cent” for the 2022 financial year from its previous forecast of 10 per cent growth.

The company posted a loss of $1.3m for the six months to July 31, an improvement from a $4.2m loss in the previous first half. Underlying earnings rose 15 per cent to $39.2m for the half year.

Sigma – which owns five pharmacy brands including Amcal, Guardian, Chemist King, Discount Drug Stores and PharmaSave banners in addition to its pharmaceutical wholesale business – booked a 8.7 rise in interim like for like pharmacy sales and near 14 per cent in wholesale sales.

CEO Mark Hooper said the first-half was impacted by Covid lockdowns. Sigma will pay an interim divided of 1c a share. Sigma shares fell 1.5c to 61.5c on Tuesday.