Sigma and CWG Merger Risks and Management Overview
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Sigma has an Attractive Standalone Investment Thesis
State-of-the-art distribution
infrastructure following completion of
$400m capital investment program
•
Strong heritage brands in Amcal and
Discount Drug Stores
Over 220 million units per year distributed to pharmacies across Australia - - 99%
dispatch on time and 99% delivery in full
Capacity to absorb future growth - Chemist Warehouse supply contract, 3PL
opportunity
Sigma FY24 YTD Trading
Update1
•
Amcal brand relaunch underway leveraging more than 85 years heritage in Australia
•
Continued investment in Discount Drug Stores
Like-for-like (LFL) wholesale sales
(excluding Rapid Antigen Tests) of
$2.3 billion, up $146 million or 6.8%
on pcp
.
New team focused on pipeline of new products, supplier relationships and sourcing
•
Margin enhancement through greater
penetration of private label
•
On track to launch over 250 private label and exclusive products in FY25, further
diversifying income and product mix
•
ERP stability has been achieved
Further potential for cost efficiencies
•
Further working capital and cost-out opportunities
Significant opportunity to drive growth
in 3PL
9
Notes:
1.
For the nine months ending 31 October 2023
2.
Significant capacity to support growth in margin-accretive 3PL
•
Offered across six states in Australia, providing improved availability and flexibility to
meet customer needs
•
Total expenses of $192 million, down
$48 million or 20% on pcp reflecting
ongoing benefit of improved cost
management
Sigma remains on track to achieve
reaffirmed full year FY24 EBIT
guidance of $26 million - $31
million²
Excluding transaction costs related to the Proposed Merger with CWG and Sigma Equity Raising. Consistent with Sigma's disclosure at its 1H24 results release on 20 September 2023, FY24 EBIT guidance is inclusive of other one-off costs anticipated in 2H24View entire presentation