You are currently viewing our site as a guest, which gives you limited access to our site features. By signing up for a free membership, you will receive our Investment Opportunity newsletters and have access to additional features for finding and comparing managed funds and shares. Registration is fast and simple, so please:
Business Description: Sigma Pharmaceuticals Limited (SIP) is a full line wholesale and distribution business to pharmacy. SIP is split into the Retail and Wholesale Division and is also the owner of the Amcal, Guardian and Amcal Max brands.
Strategy Analysis: SIP seeks to supply the most attractive portfolio of prescription drugs, over-the-counter (OTC) medicines and other front-shop product, and marketing assistance to Australian pharmacies. In 2007 to counter aggressive discounting by low-cost global generics players and by other wholesalers, SIP introduced the Embrace loyalty program. The program offers members discounts across a wide range of product in exchange for minimum purchase levels.
Sigma Pharmaceuticals reported NPAT down 62% to $18.69m for the year ended 31 January 2013. Revenues from ordinary activities were $2.94bn, up 3.1% from last year. This is despite the impact of substantial PBS price reform introduced by the Federal Government which results in the reduction of PBS listed prices for a range of generic drugs distributed by wholesalers such as the company. Basic and Diluted EPS was 1.6 cents compared to 4.2 cents last year. Net operating cash flow was $65.63m compared to $145.77m last year. The final dividend declared was 2.0 cents, taking the full year dividend to 4.0 cents compared with 5.0 cents last year.
IMPORTANT: This information has been prepared without taking into account your objectives, financial situation or needs and you should consider if the information is appropriate for you before making an investment decision. Neither InvestSMART Financial Services Pty Ltd nor any of its Related Companies make any recommendations as to the merits of any investment opportunity referred to in its emails or its related websites. Product disclosure statements for financial products offered through InvestSMART can be downloaded from this website or obtained by contacting 1300 880 160. You should consider the product disclosure statement before making a decision about the product. All indications of performance returns are historical and can not be relied upon as an indicator for future performance.