AFTER two years of hefty losses at Sigma Pharmaceuticals, Mark Hooper is confident he can return the ailing drugs wholesaler to profitability.
Since assuming the chief executive role in September, Mr Hooper has cleared Sigma's multimillion-dollar debt and halved its full-year loss to $235.4 million.
Sigma's shares soared more than 15 per cent yesterday after the announcement of the full-year results, which included a special 15¢ dividend. The shares settled to close up 4.5¢, or 10.8 per cent, at 45¢.
Advertisement: Story continues below Despite the warm market reaction, Mr Hooper remained circumspect.
''I hope what we'll be talking to you about in six to 12 months is the level of profitability,'' Mr Hooper said. ''But while we are reasonably positive about the future, to be honest, I'd prefer the credit once we got the runs on the board.''
In 2009-10 Sigma posted a $398.3 million net loss and was faced with US dynamo Pfizer selling its portfolio of prescription drugs to pharmacies directly, bypassing wholesalers.
But Mr Hooper said the sale of the pharmaceuticals unit to South Africa's Aspen Pharmacare Holdings in January had relieved its $1.09 billion debt burden and allowed the special dividend.
It was the dividend that fuelled the spike in the share price, said Wilson HTM analyst David Arter.
''The fact that they have declared it now rather than later is a positive for shareholders,'' Mr Arter said. ''We were more of the view that a capital management announcement would be made at the time of the upcoming AGM.''
Mr Arter said Sigma's results were encouraging but there was still uncertainty in the sector.
''Sigma has not provided specific forecasts for the year ahead,'' he said.
''But it has provided the market with some insight into the strategy to both protect revenue and also reduce costs to elevate margins.''
SIP Price at posting:
34.0¢ Sentiment: None Disclosure: Held
