Sigma faces another hard year
The AFR reported that Sigma Healthcare is putting back the pieces post dealing with the fallout and earnings hit after losing its biggest customer Chemist Warehouse earlier this year. Facing another tough year ahead, the pharmaceutical wholesaler is looking to cut costs, and win new customers from rival EBOS Group, which has yet to pen a deal with Chemist Warehouse nine weeks after winning the contract. Merger and acquisition activity was also noted as a strategy to grow revenue and bridge the gap in earnings. The business suggests that it is on track to meet full-year guidance of underlying EBIT of $75 million, however, Citi analysts noted: "significant cost-cutting will be required to reach guidance". Wholesalers across all sectors continue to traverse tough times.