Revenue at pharmacy supplier Sigma Healthcare fell by 6.1% to $2.02 billion for the half year to July as market conditions deteriorated for the owner of Amcal and Guardian chemist brands.
Underlying net profit after tax was down 8.8% to $28.9 million.
“We have achieved a sustained period of above market growth over the past few years,” says CEO Mark Hooper.
“So whilst the current year was influenced by some unexpected events, these are being addressed.”
Sigma has been in dispute with a major customer, pharmacy chain Chemist Warehouse over a wholesale supply agreement.
Hooper expects the company to return to growth in 2019.
“The signs are good that momentum is swinging back in our favour,” he says. “This is supported by a combination of our pipeline of pharmacy brand members, service improvements and efficiency gains.”
The company declared a steady fully franked dividend of 2.5 cents a share, representing about 92% of underlying profit.
Sigma also today announced the acquisition of the Medication Packaging Systems business, Australia’s largest provider of dose administration services to the aged care sector, for $18.5 million.
The half year results in detail: