Sigma Fiscal Year Net Profit Attributable To Members A$49.2 Million

Australian pharmacy owner and medicine distributor Sigma Pharmaceuticals Ltd. (SIP.AU) said Thursday it returned to profit in fiscal 2011 following two years of losses after gains in market share and improved working capital.

The company said in a statement net profit for the 12 months to Jan. 31 was 49.2 million Australian dollars (US$51.4 million), up 121% from the previous year's loss of A$235.4 million.

"Sigma continues to build an increasingly more efficient business that will manage market competitiveness into next year," said Chief Executive Officer Mark Hooper in a statement.

The company said revenue for the year was A$2.85 billion, down 2.1% from last year's A$2.91 billion because of government reforms to its subsidy scheme for medicines, the Pharmaceutical Benefits Scheme, and Pfizer Inc.'s (PFE) decision to distribute directly to pharmacies.

"Although major PBS reforms are expected to dampen sales, we will continue to respond through cost reduction measures and the re-negotiation of customer terms to negate the impact on Sigma's business," Hooper said.

The company said it would pay a final dividend of 2 Australian cents a share, and a special dividend of 1.5 cents a share. Last year the company did not pay an interim or final dividend but a special dividend of 15 cents a share.

-By Gavin Lower, Dow Jones Newswires; 61-3-9292-2095; [e-mail]