Sigma settlement a drag on profit
Sigma's decision to settle a class action brought by shareholders has dragged down its full year profit by more than 60 per cent.
The drugs wholesaler and pharmacy support services provider's net profit for the year to January 31 slumped to $18.7 million, from $49.2 million the previous year.
The result was affected by legal expenses related to its $57.5 million settlement of a class action brought by shareholders.
The case was brought against the owner of the Amcal and Guardian pharmacy chains in 2010 by shareholders seeking damages from alleged non-disclosures by Sigma.
Excluding those costs, Sigma's net profit rose four per cent to $52.3 million.
Revenues from continuing operations rose 3.1 per cent to $2.9 billion, despite the impact of reforms to the federal government's Pharmaceutical Benefits Scheme.
Managing director Mark Hooper did not give any earnings guidance for the year ahead, but said Sigma would continue to pursue improved returns.
"Our strategy is aligned throughout the business and the company is well positioned for growth," he said in a statement.
Sigma, which is behind pharmacy retail brands Amcal, Amcal Max and Guardian, maintained its fully franked final dividend at two cents a share.
Chairman Brian Jamieson said Sigma should be able to maintain its high dividend pay-out ratio for the foreseeable future.
Sigma's shares were two cents, or 2.15 per cent, higher at 65.5 cents at 8.20am.
