Sigma’s Chinese venture boosts half-year results

Sigma Pharmaceuticals has posted a 15 per cent increase in EBIT in first half results, off the back of its strongly performing retail network which includes Amcal Max, DDS, Amcal and Guardian.

Revenue for the six months to July 31 hit $2.15 billion, up 28.1 per cent on the same period last year.

Underlying EBIT was up 17 per cent to $48.4 million with the earning per share up 18.5 per cent to 3.2 cents, with shareholders getting an interim dividend of 2.5 cents per share.

Reported NPAT was up 26.4 per cent with underlying NPAT up 14.5 per cent.

Ibisworld have recently asserted Sigma holds 20 per cent of market share in consumer spending at pharmacies.

“Amcal and Guardian have been well known brands in the market for a long time,” said Mark Hooper, CEO and MD of Sigma.

“The more recent additions of Discount Drug Stores, Pharmasave and Chemist King has meant we have the largest pharmacy footprint in Australia.”

The wholesale distributor has also expanded internationally in recent times, with the launch of an online Amcal venture in China.

“We entered the Chinese consumer market with a very deliberate and measured strategy and it is exceeding all expectations to date,” said Hooper.

“Joining with Azoya for the execution of this direct to market online strategy using the Amcal brand as the banner gives us the strength on the ground to grow the awareness of the Amcal brand name.

“The results so far have more than doubled our expectations with strong visitation numbers, sales data and breadth of products sold through the site.”