The parent company of pharmacy franchise chains Amcal, Discount Drug Store and Guardian, has reported a drop in profits.

Net profit at wholesale and distribution business Sigma Pharmaceuticals fell four percent to $50.5m for the year ending January 31 because of a one-off accounting adjustment, reports Inside Retail.

However underlying earnings pre-interest and tax rose 13.7 percent and turnover from continuing operations got a 10.2 percent boost.

Sigma’s CEO and MD, Mark Hooper, said he was confident the group could deliver a minimum five percent annual EBIT growth for the next two years.

“We’ve invested strongly in the past few years to support our strategy of broadening our earnings base and the benefits are now starting to materialise in the form of improved performance for our pharmacy brand members and shareholders.”