Sigma Healthcare Ltd

SIG Details

Business conditions are more challenging: Sigma Healthcare Limited (ASX: SIG) has previously advised that current year sales are more challenging given general industry conditions and ongoing focus on enforcing consistent brand standards to improve brand performance. Accordingly, Sigma now anticipates that 1H18 underlying EBIT will be around $44m, with FY2018 underlying EBIT expected to be around $90m compares to current market consensus for FY18 of approximately $95m underlying EBIT. However, further initiatives have been taken to enhance sales performance and market share growth in the second half to help overcome the impact of general market conditions and provide momentum into FY2019. New initiatives are expected to drive stronger like for like performance from Sigma’s brands, and the increased investment in infrastructure will deliver growth and efficiency improvements beyond the current year. Given the increasing competition in the sector and challenging business environment,we give an “Expensive” recommendation at the current price of $0.855


SIG daily chart; (Source: Thomson Reuters)

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