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Sigma Pharmaceuticals’ Entry into China Doubles Expectations
Sigma Pharmaceuticals has posted strong first half results, with its launch into the Chinese market so far exceeding expectations.
Sigma Pharmaceuticals has posted strong first half results, with its recent e-commerce launch into China “exceeding all expectations”.
Underlying group EBIT increased by 17 percent, driven by the strength of its expanding retail network and bolstered by its recent expansion into China.
Sigma’s retail network, which has over 700 branded and 500 independent pharmacies, includes brands such as Amcal, Discount Drug Stores, Guardian, Pharmasave and Chemist King. Sigma recorded like-for-like sales growth of 7.2 percent across its branded pharmacies over the six months to July 31st.
Sigma CEO and Managing Director Mark Hooper said Sigma’s strategic positioning has helped broaden the business and drive operational improvement.
“Amcal and Guardian have been well know brands in the market for a long time. The more recent addition of Discount Drug Stores, Pharmasave and Chemist King has meant we have the largest pharmacy footprint in Australia,” he said.
The company booked revenue growth of 28.1 percent to $2.15 billion for the six-month period.
Sigma launched into China in early June this year, partnering with Chinese e-commerce solution provider Azoya to establish an Amcal-branded e-commerce site. Results since the launch into China have doubled the company’s expectations.
“We entered the Chinese market with a very deliberate and measured strategy, and it is exceeding all expectations to date. We know the Australian market very well, but we needed a partner to target China. Joining with Azoya for the execution of this direct to market online strategy using the Amcal brand as a banner gives us the strength on the ground to grow the awareness of the Amcal brand name,” Hooper said.
“The results so far have more than doubled our expectations with strong visitation numbers, sales data and breadth of products sold through the site.
“The venture is at an early stage but provides considerable scope for expansion.”
Sigma currently offers more than 7,000 SKUs through its Chinese e-commerce operations, which include an Amcal-branded website as well as an Amcal shop front on Azoya’s own cross-border shopping platform, Haituncun.com.