Sigma Healthcare has reported double-digit increase in annual sales and profit, as the business continues to grow following its merger with Chemist Warehouse.
For the year ended June 30, revenue soared 15.5 per cent to $10.8 billion. Normalised earnings before interest and taxes surged 20.6 per cent to $1 billion, while net profit after tax rose 22.3 per cent to $732.3 million.
“FY26 demonstrates that Sigma is not simply larger after the merger, it is structurally stronger,” commented CEO and MD Vikesh Ramsunder.
“We have a network approaching 1000 pharmacies globally with a strong pipeline of growth in each market. This brings significant scale that leverages our existing infrastructure, capabilities and expertise.”
The Australian segment remains the growth engine, with revenue up 14.9 per cent to $10.4 billion. This translated into an 18.3 per cent uplift in normalised EBIT.
According to Ramsunder, sales have also benefited from rising demand for GLP-1 medicines across the market.
“Despite GLP-1s being dilutive to margin percentage, we have broadly maintained our Australian segment gross margin at 17.6 per cent.
“As we cycle elevated early period sales growth, we expect GLP-1 sales growth to be enduring and to provide flow-on benefits for adjacent categories as consumers seek to pro-actively manage their health,” he said.
During the year, the group added 24 Chemist Warehouse branded stores, raising the Australian network to 561. The Chemist Warehouse network sales grew 15.9 per cent, with like-for-like sales up 13.4 per cent.
The reinvigoration of Amcal and Discount Drug Stores brands is also progressing. The number of stores across the network is expected to return to growth in FY27 with a solid pipeline of 82 stores.
The group continued to invest in its own and exclusive labels with more than 470 products launched over the period.
Regarding post-merger integration, the group extracted $32.6 million in synergies during the year, as it progresses toward the $100 million per annum target by FY29.
Earlier this year, Sigma told investors that it was backing out of a proposed $14 billion acquisition of the UK’s largest pharmacy chain, Boots.
