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

25/11/2019 10:50:00

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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.