The pharmaceutical wholesaler said on Wednesday that the improved financial performance was due to the rapidly evolving COVID-19 environment and the sudden increase in demand for RATs, which pushed significant volume growth in January.
However, reported net profit after tax is expected to be a loss of $5 million to $10 million for the year, largely due to one-off costs of more than $30 million associated with a SaaS accounting policy change.
This cost is higher than normal due to the recently implemented ERP system upgrade.
Sigma said the improved position has also been partially offset by other costs associated with the implementation of its ERP which went live in August, and the impact of the closure of its Rowville distribution centre in late January. In December, it flagged these costs will be between $25 million and $30 million.
The reported NPAT loss was better than Shaw & Partners analyst Phil Pepe had forecast for a loss of $24.9 million. Mr Pepe has a ‘buy’ on the stock saying Sigma appears attractively priced relative to market leader EBOS Group, trading at around half it FY23 multiples.
Sigma shares gained 4 per cent in early trade to 52¢ each before trimming gains to be up 1.4 per cent.
Sigma’s full-year results are scheduled for March 29.
The update comes as its new boss, South African Vikesh Ramsunder, took over steering Sigma on February 17 amid a pressured share price.
Former CEO Mark Hooper tendered his resignation to Sigma, which also operates the Amcal, Chemist King, Discount Drug Stores, Guardian and PharmaSave retail banners, last August.
Sigma also dropped its bid for rival Australian Pharmaceutical Industries last year.
