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Sigma Healthcare (ASX:SIG) was up as much as +6% in afternoon trade on Wednesday after coming out swinging with its first full-year results since the reverse listing of Chemist Warehouse. And the numbers are big.
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For FY25, Sigma posted a 41.4% jump in normalised EBIT, hitting $834.5 million, with EBIT landing at $903.4 million. Revenue surged 82.4% to $6 billion, while operating free cash flow came in at a solid $546 million.
“The merger with Chemist Warehouse has delivered a stronger, more integrated healthcare business, with greater scale, capability, and market reach,” CEO Vikesh Ramsunder said.
The retail network continues to boom, with Sigma now boasting as many as 588 Chemist Warehouse stores across Australia and 16 international locations, including New Zealand, Ireland, and the United Arab Emirates.
Retail network sales topped $10.3 billion, with like-for-like growth of 11.3% in Australia.
Sigma’s exclusive product range is gaining momentum, too, highlighted by the launch of 269 Wagner generic products in November 2024.
Sales of its own exclusive label products were up over 20%, the company reported, with strong pharmacy conversion rates set to drive future margin growth.
Over 532 million units were distributed during the year, Sigma spruiked; a +29% increase as the company flexed its expanded logistics muscle. Thanks to this scale, per-unit logistics costs dropped 11%.
Sigma also confirmed the closure of distribution centres in South Guildford and Port Adelaide by late 2026, consolidating operations.
And, an ePharmacy centre in Preston will shut in September, shifting focus in store.
Looking ahead
FY26 is off to a flyer with double-digit like-for-like sales growth YTD. Store rollout is expected to continue at a steady pace, alongside further exclusive product launches. “We are just at the beginning of unlocking the full potential of this merger,” Ramsunder enthused.
With net debt at $752.2 million, well below merger projections, and a $1.5 billion facility in place until 2028, Sigma is shaping up to deliver a knockout FY26.
A 1.3c fully franked final dividend has been declared, payable September 18.
SIG has been up 6.3% at $3 in arvo trade.
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