Sigma Healthcare (ASX:SIG) upgrades guidance on Covid demand

Company News

by Lauren Evans

Sigma Healthcare (ASX:SIG) has upgraded its earnings guidance for the year ending January 31 following a demand for Covid-19 related products.

The company expects underlying EBITDA to be 10 to 15 per cent higher on the prior year, compared to the previous guidance provided last December of around 10 lower.

The improved result reflects the rapid Covid-19 environment, particularly late year, and the sudden demand for rapid antigen tests (RATs). 

However, reported net profit after tax is expected to be a loss of $5 to $10 million for the year, largely impacted by the SaaS accounting policy change. 

According to Sigma, the increased demand for RATs has been partially offset by other costs associated with the implementation of its ERP solution and related business disruptions. 

Sigma’s full year results are scheduled for March 29 this year.

Shares in Sigma Healthcare (ASX:SIG) are trading 1 per cent higher at $0.50. 

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