Sigma Healthcare (ASX:SIG) announced financial results for the half-year ended 31 July 2022.
Picked, packed and dispatched 115 million units in 1H23.
Delivery in Full (DIF) at 97%.
Dispatch on Time (DOT) at 99%.
Stock availability average 87%.
Renewal of Leadership team.
Net Debt - 43% reduction from $149m at FY22 to $86m at 31 July 2022.
Inventory write-off of $29 million.
Asset impairment and write-off $9.7 million.
Delivered a 1H23 Statutory NPAT loss of $1.5m.
Declared an Interim Dividend of 0.5 cents per share.
Go-live had a significant adverse impact on the business.
ERP implementation issues were a major contributor to stock write-off.
ERP platform has been stabilised and is now operating as designed.
Post implementation review completed - focused shifted to optimisation.
Implementing a fit for purpose demand planning tool to improve stock availability.
Full integration of key subsidiary businesses to occur over the next 12-18 months.
Community pharmacies sales down 7%.
Hospital sales up 7%.
Other category up 167%, benefitting from strong RATs sales.
Market share 18% of community pharmacy market.
Significant available capacity in existing infrastructure to absorb growth ambitions - 30% to 40% available capacity.
Over 520 franchise brand members.
Sales growth of 5.0% achieved our franchise brands.
Over 560,000 flu and Covid-19 vaccinations administered across our network in 1H23, a fourfold increase on 1H22.
Amcal won the Finder Award 2021/20222 for best rated brand in pharmacy.
Discount Drug Store won the Roy Morgan Customer Satisfaction Award 2021.
Pharmasive - Canstar Blue Most Satisfied Customer Award 2022.
Revenue growth of 15.9%.
Currently managing 33,000 pallets of medicines for customers.
Servicing 12 clients.
Additional 20,000 pallet spaces being added in Truganina from December 2022.
Patients packed increased by 20.8%.
MPS continues to achieve world class standard medication packaging accuracy rates - 1 error in 1 million medication dose packaging.
MediSphere eNRMC software has over 3,000 residents subscribed to the solution since launch in February 2022.
New blister machine in NSW has enabled entry to a new market segment.
Grow profitable wholesale market share.
Consolidate and build our franchise brand network.
Diversify our streams on income through expanded product offerings via health, beauty and wellness categories.
Divest non-core assets and continue to simplify the business.
Restore customer confidence and trust, particularly in Victoria.
Continue business simplification and cost reduction.
Implement franchise brand strategy.
Finalise Truganina DC expansion and Hobart DC build.
No formal guidance but confident of continues improvement in operational performance.
Following the announcement the company?s share price fell 6.428%.