Dividend payout maintained despite softening in sales.
Sigma Pharmaceuticals has just reported its results for the 12 months to 31 Jan 2018, reflecting a softening in consumer sentiment and the expected drop in sales for low margin Hepatitis C medicines.
Total revenue declined 5.4% to $4.13 billion, and while pre-tax (EBIT) earnings rose 3.4% to $83.7m the overall underlying net profit after tax declined 10.5% to $59.9 million for the year. Despite this Sigma continued to reward its shareholders with a 2.5c per share final dividend, meaning 88.7% of its profits are being returned to investors.
“Despite some challenges in FY18 Sigma remains well positioned to capture the benefits of its strategic investments in the business in the years to come,” according to ceo and md Mark Hooper, saying the result was in line with guidance.
After adjustment for Hepatitis C, sales revenue was “broadly flat” which Hooper said was a relatively good outcome against the backdrop of general softer consumer sentiment as well as the “exit of a large co-branded customer group in Queensland”.
The national expansion of the Sigma Hospital Services business continues to gain traction, generating a fresh revenue stream, while expanding the company’s Central Healthcare Services (CHS) network nationally has given it the ability to service the hospital market across the country with a differentiated offering.
Hooper hailed the “pleasing” $18.5 million addition of centralised dose administration aid provider MPS (Medication Packing Systems) which has a “great pipeline of opportunities for development”. He also announced the appointment of Goldman Sachs as financial adviser to assist with M&A and strategic advice about potential acquisitions to diversify earnings.
More details in tomorrow’s issue of Pharmacy Daily.
