SIG -5.71%: first half results from the pharmaceutical product wholesaler was reasonable on the first read, however there are still a number of issues holding performance back. EBITDA was up 17% to $20.7m, while the company posted a net loss of $1.5m, though it included $38.7m worth of write-downs on assets and inventory. RAT sales continued to prop up the numbers, though a return to ‘normal’ has seen general pharmaceutical sales improve. The long standing issues with the company’s ERP software have been resolved and it is now up and running as designed. Costs have weighed on the numbers though with freight costs up 11% and employment costs up 13% including $3.3m increase in ongoing tech and support costs. Sigma didn’t give any firm guidance which further concerned the market, only talking to simplification and cost reduction.
MM is neutral/negative SIG ~66c
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