SIG -0.66%: First-half half results were out from the pharmaceutical goods wholesaler today, coming in broadly in line with expectations though there were positive signs on the cost front. Revenue for the half was $1.68b, down -8.4% on the back of lower RAT sales and following the sale of their Hospital supply arm. EBIT rose 315% to $22.4m as solid cost control and operational improvements lifted margins. Despite the strong EBTI result, the company left their FY24 guidance unchanged at $26-31m, despite having covered ~80% in the first half. The guidance does include one-off costs which the company will have to incur as they prepare to take on the full Chemist Warehouse supply contract from 1 July 2024. Shares traded in a wide range today as the market looked to price in the near-term impact but longer-term earning potential.
MM is neutral SIG
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