Sigma Healthcare Ltd · ASX:SIG
Sigma Healthcare — H1 FY2022 Earnings Presentation
20 slides from Sigma Healthcare's earnings presentation, Sep 21, 2021
Slide 1: Growth through challenging times
For personal use only Growth through challenging times HY22 Results Announcement 21 September 2021
Slide 2: Important Notice
Important Notice For personal use only This presentation for Sigma Healthcare Limited and its subsidiaries (Sigma Group) is designed to provide: • an overview of the financial and operational highlights for the Sigma Group for the half year period ending 31 July 2021; and • a high level overview of
Slide 3: Mark Hooper, CEO & Managing Director
For personal use only Mark Hooper CEO & Managing Director Sigma Healthcare Limited – 1H22 Results Presentation 3
Slide 4: 1H22 Overview – continued growth in challenging times
1H22 Overview – continued growth in challenging times For personal use only • Underlying EBITDA up 14.7% to $39.2m (no reliance on COVID-19 related funding) 14.7% Underlying • Overall COVID-19 had a slight negative impact on the first EBITDA half, mainly in relation to sales and promotional income 1
Slide 5: Jackie Pearson, CFO
For personal use only Jackie Pearson CFO Sigma Healthcare Limited – 1H22 Results Presentation 5
Slide 6: Financial Performance
Financial Performance For personal use only REPORTED UNDERLYING* 1 Sales Revenue $m HY2022 HY2022 HY2021 Change o Total wholesale pharmacy sales grew 13.6%: • Non-CW^ sales up by 3% on LY 1 Sales Revenue 1,732.6 1,732.6 1,642.2 +5.5% • CW sales up 46.8% on LY – reflecting full run rate 2 Gross Profi
Slide 7: Capital Management
Capital Management For personal use only Dividends Share Buy-Back Capex • Fully Franked Dividend of 1.0 cent • Remains an option but not currently • Still expecting $55m-$60m capital per share: actively buying expenditure during FY22 to finalise › Ex-Dividend Date – 26 September 2021 • Focus of Boar
Slide 8: Capital Management (continued)
Capital Management (continued) For personal use only Return on Invested Capital Cash flow and Cash Net Debt (ROIC) Conversion Cycle (CCC) • Underlying ROIC* of 9.8% • CCC remains consistent at 31 days • Net Debt $82.0m at 31 July 2021 • Underlying ROIC remains a focus – • Reflects an increase in who
Slide 9: SAP implementation – cut over on August
SAP implementation – cut over on 29 August For personal use only o Largest SAP S/4HANA implementation in Australia o Implementation cut over occurred on 29 August o 18-month implementation complicated by COVID operating restrictions o A complex project delivered within budget and broadly on time o S
Slide 10: Mark Hooper, CEO & Managing Director
For personal use only Mark Hooper CEO & Managing Director Sigma Healthcare Limited – 1H22 Results Presentation 10
Slide 11: Organic growth in Pharmacy continues
Organic growth in Pharmacy continues For personal use only Wholesale Sales o Overall sales up 13.6% which includes the positive impact from CW o Sales (ex-CW) up 3.0% – in line with market o PBS growth is around 6% with OTC growth down 3%-4% o Includes some ongoing impact from lower diagou activity
Slide 12: Expansion businesses
Expansion businesses Diversified growth For personal use only Hospitals 8.9% Sales growth* (market growth circa 5%) Contract Logistics o Above market but impacted by COVID o Includes both 3PL and 4PL restrictions and some price erosion on o Over 20,000 pallets now under key high-cost drugs contract
Slide 13: Expansion businesses (continued)
Expansion businesses (continued) Diversified growth For personal use only Medication Packaging Services (MPS) Medical Industries Australia (MIA) o Business performance flat given access to o Sales and earnings well down on 1H21 given Residential Aged Care remains a challenge high demand experienced
Slide 14: Ongoing impact of COVID-19
Ongoing impact of COVID-19 For personal use only Community Pharmacy, • Covax working group supporting pharmacists in COVID-19 vaccine rollout across the network Hospital Pharmacy • Support for hospitals with COVID related critical Operations Impacts on & Aged Care drugs shortages and supply for new
Slide 15: Clear and consistent strategy
Clear and consistent strategy For personal use only Together with an engaged team, this underpins our growth ambitions and our ability to execute strategy Optimise an efficient Drive organic operating and acquisitive cost base growth from initiatives from expansion already businesses implemented Dri
Slide 16: Outlook
Outlook Outlook provided at FY21 Updated Outlook For personal use only FY22 – now expecting closer to 5% Underlying EBITDA Target: Targeting Underlying EBITDA CAGR* growth, reflecting the increased impact and uncertainty of 10% for the next two years from COVID-19 restrictions in 2H22 CAGR >10% ~$10
Slide 17: Appendices
For personal use only Appendices Sigma Healthcare Limited – 1H22 Results Presentation
Slide 18: Appendix – Cash flow
Appendix 1 – Cash flow For personal use only 0 OPERATIONS / WORKING CAPITAL REWARDING SHAREHOLDERS INVESTING (10,000) (20,000) (30,000) (40,000) (50,000) (60,000) (70,000) (80,000) Net Cash EBITDA Change in Income Tax Dividend Net Cost of Capex Funding - debt Investments Repayment of Net Interest Ne
Slide 19: Appendix – Reconciliations
Appendix 2 – Reconciliations For personal use only Reconciliation of Reported (IFRS) and Underlying EBIT and Reconciliation of Reported (IFRS) and Underlying NPAT EBITDA 31 July 2020 31 July 2020 31 July 2021 (1) 31 July 2021 (1) $000 $000 $000 $000 Reported EBIT 4,373 (1,061) Reported NPAT attribut
Slide 20: Thank you
For personal use only Thank you Sigma Healthcare Limited – 1H22 Results Presentation