As signalled a week ago, Sigma Pharmaceuticals has posted a modest 4.9% rise in first-half net profit and a similar profit guidance for the for the full year.
Sigma reported on Monday net profit of $32.2 million for the six months to July 31, up from $30.7 million in the previous corresponding period.
The company declared an interim dividend of three cents per share, unchanged from a year earlier.
Sigma said it was maintaining its previous guidance of "modest growth in NPAT" for the full year ending January 31, 2010.
The bottom line, revenue and pre-tax earnings figures had been revealed in a presentation to investors a week ago for the $297 million capital raising, the bulk of which was completed last Thursday.
Sigma shares eased a cent to $1.06
Managing director Elmo de Alwis said in the statement the result reflected the defensive nature of the group.
"This stable result was achieved against a backdrop of poor economic conditions, a decline in consumer discretionary spend and competitive pricing for generics," he said in the statement.
Sigma reported earnings before interest, tax, depreciation and amortisation (EBITDA) of $76.8 million, down 4.6% on the previous corresponding period.
That was struck on the previously reported 3.5% rise in sales to $1.516 billion.
"This stable result was achieved against a backdrop of poor economic conditions, a decline in consumer discretionary spend and competitive pricing for generics," CEO Elmo de Alwis said in the statement to the ASX.
"It was a pleasing result and reflected the defensive nature of the Group."
"We have delivered a Net Profit After Tax in line with expectations. Our diversified business model has enabled us to compensate for adverse conditions in some sales channels.
"The improvements in the wholesale distribution and medical sales channels have largely offset the downturn in discretionary consumer spending, heightened competitor activity in generics and a full-half impact of last year’s PBS reform price reductions," Mr de Alwis said.
Mr de Alwis went on to say, "Our commitment to investing in and growing our pharmaceutical business is demonstrated by the recently announced acquisition of an established pharmaceutical brand portfolio and manufacturing facility from Bristol-Myers Squibb.
"In acquiring fifteen established originator pharmaceutical brands, we are further broadening our product offering to the pharmacy sales channel." He said that "as part of the acquisition, some 130 BMS employees will be transferring to Sigma.
"The acquisition of BMS’ modern pharmaceutical manufacturing facility will boost Sigma’s overall manufacturing function and capability and will cement our position as Australia’s leading manufacturer by volume of pharmaceutical products" he said.
The prior year improvements accruing from Sigma’s continued focus on return on capital measures were expanded, with working capital cut by $39.2 million.
