Sigma Healthcare upgrades guidance on Chemist Warehouse contract
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The news: Pharmacy wholesaler Sigma Healthcare has upgraded its full-year normalised EBIT guidance for the year ending 31 January 2025, following "improved operational performance" boosted by a new Chemist Warehouse supply contract.
The numbers: Sigma upgraded its EBIT guidance from between $50 million and $60 million to a range of $64 million to $70 million.
Sigma shares edged down 0.2% to $2.83 by 10:50am AEDT, having advanced more than 160% over the last 12 months.
The context: Sigma said the upgrade follows "strong execution" of a new Chemist Warehouse supply contract that commenced on 1 July 2024, demonstrating the group's ability to "efficiently absorb volume growth".
However, the company warned that full-year net profit after tax will be "significantly impacted" by non-recurring costs relating to its merger with Chemist Warehouse, including impacts of changes to existing performance rights approved at its extraordinary general meeting.
Sigma's merger with retail chain Chemist Warehouse is expected to complete this month.
The source: ASX announcement
