Sigma Healthcare (SIG) Company Presentation summary

Key investment highlights

• Largest retail pharmacy franchisor in Australia, with 20 years of consistent growth in the Chemist Warehouse network.

• Merger leverages retail strengths and efficient supply chain for network expansion.

• Multiple growth levers: domestic and international store rollout, marketing, and cost synergies of $60m p.a. expected by year four.

• Highly experienced management and board focused on value creation.

Merged group snapshot

• Operates 879 Australian franchise stores and 81 international stores across four countries.

• $9.6bn LTM Dec-24 Chemist Warehouse Retail Network sales, with 10% like-for-like sales growth in 1H25.

• 3,500 wholesale pharmacy customers, 360m units distributed annually, and 15 distribution centres in ANZ.

• FY24 pro forma revenue of $6.7bn, estimated net debt of $1.0-1.3bn, and ~9% EBIT margin.

• Target dividend payout ratio of 50-70%.

Growth track record

• Chemist Warehouse Retail Network sales grew from $158m in FY04 to $9.6bn LTM Dec-24, a 10-year CAGR of 13%.

• Store count increased from 58 in FY04 to 658 in LTM Dec-24, averaging 32-33 new stores per year over the last decade.

• 20 consecutive years of network sales growth.