sigma off the bourse, page-20

I can assure you that Sigma does have extended 6 to 12 month credit terms with 'discount' pharmacies. These customers have the largest discounts off regular PBS & private script lines and also receive very favourable discount terms on 'OTC' lines. If you ran a company that provided products that had such slim margins (PBS medicines) and you provided extraordinary extended credit terms on massive $$$ turnover , then what would you expect other than bedlam when YOUR dollars aren't in YOUR bank account but sitting nicely in your customers bank accounts! Bending over backwards for loyal and profitable paying customers is good business sense but bending over for these discounters achieves very little profit for Sigma ( makes the sales turnover look great BUT your profits are non existent ). It's not about turnover but profits. Interesting and simple concept which often is lost to the people that make the decisions in this company.