Sigma Healthcare (ASX:SIG) regains My Chemist/Chemist Warehouse supply deal

Company News

by Rachael Jones

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Last Updated: 6/12/2019 3:59 PM

Sigma Healthcare (ASX:SIG) has reached an agreement with the My Chemist/Chemist Warehouse Group (MC/CW Group) for the supply of Fast Moving Consumer Goods.

The arrangements secure the first-line supply contract for 4.5 years, with sales in the first full year of operations of approximately $700-800 million.

Impact on earnings Initial work and costs will be required to transition in the volume associated with the MC/CW agreement.

This will delay the timing of some of the Project Pivot savings and is likely to impact FY20 EBITDA guidance.

Shares in Sigma Healthcare (ASX:SIG) are trading 12.78 per cent higher at $0.75.
  

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.