Sigma Healthcare Ltd · ASX:SIG
Sigma Healthcare — FY2023 Earnings Presentation
21 slides from Sigma Healthcare's earnings presentation, Mar 23, 2023
Slide 1: FY23 Results Announcement
FY23 Results Announcement 23 March 2023
Slide 2: Vikesh Ramsunder, CEO and Managing Director
Vikesh Ramsunder CEO and Managing Director We acknowledge the Wurundjeri people of the Kulin Nation and acknowledge them as the Traditional Custodians of the land on which we meet today. We pay our respects to their Elders past, present and emerging. 2 Sigma Healthcare Limited – FY23 Results Announc
Slide 3: Agenda
Agenda 1. Review of the Year 2. Financial Performance 3. Business Update 4. Strategy Update 5. Outlook 3 Sigma Healthcare Limited – FY23 Results Announcement
Slide 4: Overview - Accelerated operating performance
Overview - Accelerated operating performance • Business simplification is progressing well • ERP - system stabilised with focus now on optimisation • Logistics – metrics now at a level better than before ERP implementation Net Sales up 6.2% on FY22 EBIT up 733.2% on FY22 • Infrastructure – new Hobar
Slide 5: Nigel Simonsz, Chief Financial Officer
Nigel Simonsz Chief Financial Officer 5 Sigma Healthcare Limited – FY23 Results Announcement
Slide 6: Financial Performance
Financial Performance P&L summary ($’m) Comments: • Sales revenue up 6.2% to $3.7bn, mainly reflecting growth in sales to key FY23 FY22 customers and through Rapid Antigen Tests (RATs) $m $m % change • Gross Profit increase mainly reflects volume growth and material one-off items: – contribution of
Slide 7: Balance Sheet
Balance Sheet Statutory Balance Sheet extract ($’m) Comment FY23 FY22 $m $m • Prepayment of RATs in FY22 Cash and cash equivalents 16.7 31.1 Trade and other receivables 333.8 359.6 • Net reduction in borrowings mainly reflects the cancellation of Inventories 324.9 321.7 Tranche C debt facility of $7
Slide 8: Net Debt reduction from $149m to $67m
Net Debt reduction from $149m to $67m Net debt movement, $m Inflow FY22 – FY23 Principal Outflow Working Repayment Jan-22 EBITDA Capital Prepayments Tax Dividends Capex Leases Net Interest Other Jan-23 ($149.2) $49.6 ($67.0) $65.2 ($5.8) $1.3 ($16.9) ($28.6) $43.2 ($16.1) ($9.7)
Slide 9: Cash Flow
Cash Flow Statutory Cash Flow extract ($’m) Comment FY23 FY22 • Improvement in net cash flow from operating activities mainly $m $m reflects improved working capital management and EBITDA Receipts from customers 4,167.8 3,906.9 performance Payments to suppliers and employees (4,009.6) (3,937.0) • FY
Slide 10: Capital Expenditure
Capital Expenditure Capital Expenditure $’m 140 • Distribution centres and IT infrastructure investment program Business Projects Distribution centres Acq. Of Subsidiaries is complete 120 109 • FY23 spending largely on Truganina expansion, Hobart DC 100 95 build and Head Office relocation • Go forwa
Slide 11: Vikesh Ramsunder - Business update
Vikesh Ramsunder Business update 11 Sigma Healthcare Limited – FY23 Results Announcement
Slide 12: ERP status
ERP status Building capability to execute our plans • System now stable • Introduced new Data and Analytics platform and capability • Completed total migration of all Data Centre Infrastructure to the cloud • Concluded the upgrade of our inventory planning system • System optimisation is ongoing to
Slide 13: Wholesale
Wholesale ▪ Pharmacy wholesale sales were up 2.2%, benefiting from RAT Delivery in full (DIF) sales in 1H23 and COVID anti-virals in 2H23, but impacted by operational challenges 99.1% 99.4% 99.1% 98.3% 98.6% 98.4% 98.5% 98.5% ▪ Hospital sales were up 11.3% to $363.7 million 94.3% ▪ Over 230 million
Slide 14: Franchise Brands
Franchise Brands ▪ 4.2% Sales growth achieved across our franchise network ▪ Merger of Guardian and Amcal: 50% of our identified members have already committed, and we are on track to achieve our conversion targets ▪ Discount Drug Stores: brand proposition being reinvigorated under new leadership ▪
Slide 15: Third Party Logistics (3PL)
Third Party Logistics (3PL) • Business has been steady, providing warehousing and logistics services across pharmaceutical, medical consumables and fast-moving consumer goods sectors • Currently has ~30,000 pallets of inventory under management for suppliers • Expansion of Truganina DC in Victoria h
Slide 16: MPS Connect
MPS Connect Delivering service excellence in medication management • Achieved 18% growth in packed patient numbers • 45% growth in corporate aged care facility business • MediSphere# subscriber numbers grew from 5 to 350, with over 127,000 prescriptions generated • Medisphere# awarded Silver at the
Slide 17: Divesting non-core assets
Divesting non-core assets • Cessation of Cura operations, a loss making arm of the MPS Connect operations • Disposal of interest in WholeLife pharmacy brand • Sale agreement signed for the disposal of Hospital operations and inventory for approx. $44 million, effective 31 March 2023, subject to regu
Slide 18: Update on Strategy execution
Update on Strategy execution The benefits from the execution of our strategy will Our Strategy begin to be realised over the next two years 1 Grow scaletheand profitable market share in wholesale business • Capacity and capability has been created Divest non-core assets and continue to 2 simplify th
Slide 19: FY24 Outlook
FY24 Outlook 1. Confident our strong operational performance will continue, with the focus now on winning back the trust and confidence of our customers 2. Implementing a sustainable Amcal and DDS brand strategy 3. Strengthen the Balance Sheet by improving working capital management and divestment o
Slide 20: Important Notice
Important Notice The information contained in this presentation about Sigma Healthcare Limited and its subsidiaries (Sigma) is designed to provide an overview of the financial and operational highlights for Sigma for the full year period ending 31 January 2023; and a high level overview of aspects o
Slide 21: Thank you
Thank you