SIGMA Healthcare this morning reported its results for the six months to 31 Jul, with statutory earnings before interest and tax of $25.3m, down 40.8%.
CEO Mark Hooper cited "the twin impacts of ongoing PBS pricing reform and the continuation of manufacture exclusive direct distribution" which continued to weigh on the industry.
"Whilst we are encouraged by engagement with government, resolution and certainty is needed more than ever," he said.
Hooper also reiterated previous commentary about the termination of the company's agreement with the My Chemist/Chemist Warehouse (MC/CW) group, which will cease on 30 Jun 2019.
"We stand by our decision not to renew the MC/CW contract on the terms sought, as it was not in the best long-term interests of the company or its shareholders.
"This decision will free up over $300 million in working capital and provides us with an important pivot point to re-shape and grow the Sigma business," he said.
Sigma continues to invest in programs and support structures to enhance the capability of its more than 600 pharmacy brand members across the country, Hooper added.
"Our own brands are performing well in what is a challenging retail environment," he said, with Amcal growing sales by almost 2%, Guardian over 5% and DDS almost 3% - in contrast to an overall contraction in the pharmacy market.
"While the exit of MC/CW will of course impact the business, we are confident that we have the pipeline to grow organically across retail, pharmacy, hospital pharmacy, 3PL and through services such as MPS," the Sigma ceo concluded.
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