Sigma Healthcare Ltd · ASX:SIG
Sigma Healthcare — FY2022 Earnings Presentation
20 slides from Sigma Healthcare's earnings presentation, Mar 29, 2022
Slide 1: FY22 Results Announcement
FY22 Results Announcement 29 March 2022
Slide 2: Vikesh Ramsunder, CEO and Managing Director
Vikesh Ramsunder CEO and Managing Director 2
Slide 3: Overview
Overview • Review of the year • Financial Performance • Business update • Strategic focus • Outlook Sigma Healthcare Limited – FY22 Results Presentation 3
Slide 4: Review of the Year
Review of the Year • Trading performance • Operational performance • ERP implementation • Distribution Centre investment program • Final Dividend of 1.0 cent per share fully franked Revenue up 1.3% to Reported Net Loss After Earnings per share Final Dividend Per Share $3.45 billion Tax ($7.2m) ($0.7
Slide 5: Jeff Sells, CFO
Jeff Sells CFO Sigma Healthcare Limited - FY22 Results Presentation 5
Slide 6: Financial Performance
Financial Performance Sales Revenue up 1.3% to $3.45bn • Benefited from: o Overall strong sales growth in 1H22 Statutory Results ($’m) % Change FY22 FY21* o Retail brands LFL sales up 6.4% for the full year o CW sales up by 13% reflecting full year run rate Net Sales 1.3% 3,446.2 3,400.40 o Hospital
Slide 7: Total Operating Expenses
Total Operating Expenses – up 0.2% Warehouse and Delivery: Up 5.3% to $154.9m • Short term increase in labour and logistics costs to support the business through ERP implementation • Dual operating and transitional impact on productivity relating to the move from Rowville DC to Truganina DC • $4.2m
Slide 8: Cash Management and Debt
Cash Management and Debt $' 0 0 0 Sigma Healthcare Limited – FY22 Results Presentation 8
Slide 9: Cash Conversion Cycle
Cash Conversion Cycle • Cash conversion cycle increase by 2 days to 33 days • Increase in Debtors balance due to Rapid Antigen tests in Jan 22 • Improvement required in the DPO and Cash conversion cycle* Jan-22 Jan-21 DIO spread Trade Debtors 343,315 310,525 Inventory 321,640 349,138 Trade Creditors
Slide 10: Capital Expenditure and ROIC
Capital Expenditure and ROIC Capex • Capital investment program near completion • Total spend close to $390m over the last 5 years • Expect circa $40-$45m capex in FY23 to complete Truganina extension, construct Hobart DC, and finalise IT projects • Return to normal capex of circa $5m - $10m from FY
Slide 11: Business Performance
Sa siness Performance 1 a a > ww
Slide 12: ERP Implementation
ERP Implementation • ERP implementation impacted our customers and our business • Good progress has been made on identifying and resolving system issues • Focus is on process improvements to enhance customer service • Targeting 30 April 2022 for full stabilisation • Targeting January 2023 for full o
Slide 13: Wholesale
Wholesale • Total revenue of $3.4 billion • Core business capability with over 220 million medicines distributed to community and hospital pharmacies • Pharmacy Wholesale market share currently circa 19.9% - impacted by ERP implementation • Focus on stabilisation and optimisation Sigma Healthcare Li
Slide 14: Community Pharmacy
Community Pharmacy • Over 530 pharmacies operating under one of our pharmacy brands • Sales at the pharmacy level – circa 17%* of consumer spend in pharmacy • FY22 Sales to our pharmacy brands down 2% • Almost 650,000 Covid-19 vaccines administered across the network since June • Private Label range
Slide 15: Contract Logistics
Contract Logistics • Growth of 15.8% over the last 12 months • Currently managing 30,000 pallets of medicines for customers (nationally) • Servicing 11 clients • Truganina DC expansion to add 20,000 pallet capacity Sigma Healthcare Limited – FY22 Results Presentation 15
Slide 16: MPS Connect
MPS CONNECT • Growth in MPS sales despite Covid-19 restrictions • 20% of market share of packing services to Residential Aged Care (RAC) patients • Business growth opportunity – reach and market penetration • In FY22 MPS launched market leading integrated software solutions to RAC that opens access
Slide 17: Outlook – moving the business forward
Outlook – moving the business forward 1. No FY23 guidance, but expect to return to profit 2. Immediate focus • ERP – stabilisation and optimisation • Truganina DC, Victoria – enhance operational performance 3. Short term focus • Get the basics right – obsessed with servicing the customer • Simplify
Slide 18: Thank you
Thank you
Slide 19: Appendix – Reconciliation to Underlying guidance
Appendix – Reconciliation to Underlying guidance Reconciliation or Reported to Underlying EBITDA Jan-22 Reported EBITDA 30,004 Add Back One-Off Adjustments Restructuring, transformation, and dual operating costs 30,078 SaaS adjustment 31,811 Other 255 Underlying EBITDA 92,148 Sigma Healthcare Limite
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 2022; and • a high level overview of aspe