Sigma Healthcare (SIG) H2 2025 earnings summary

Executive summary

• First results post-merger show strong performance, with normalized EBIT up 41% to $834.5m and network sales reaching $10.3bn, a 14% increase year-over-year.

• Chemist Warehouse added 35 stores, expanding to 674 globally, and with Amcal and Discount Drugstores, approaches 1,000 stores worldwide.

• Own and exclusive label product sales grew over 20%, with more than 3,000 products in the portfolio and distribution center volumes up 29%, reducing cost per unit by AUD 0.11.

• Upgraded synergy target to AUD 100 million per annum by year four, with most savings expected in years three and four post-merger.

• Completed merger with Chemist Warehouse Group Holdings Limited in February 2025, driving scale and integration benefits.

Financial highlights

• Revenue increased 82% to AUD 6 billion year-over-year, with pro-forma revenue at AUD 9.6 billion, up 44% year-over-year.

• Normalized EBIT was AUD 835 million, up 41%, and normalized net profit after tax rose 40% to AUD 579 million.

• Pro-forma EBIT reached AUD 903 million, up 49.2% year-over-year, with a pro-forma EBIT margin of 9.4%.

• Gross profit increased to AUD 1.45 billion, with cost management leading to operating leverage.

• Operating cash flow was AUD 599 million, with high cash conversion of 83% (pre-tax operating cash flow/normalized EBIT).

Outlook and guidance

• Positive momentum continues into FY 2026, with double-digit like-for-like Chemist Warehouse retail sales growth to date.

• Focus remains on seamless integration, continued domestic and international store rollout, and extracting AUD 100 million in annual synergies.

• Anticipates continued rollout of Chemist Warehouse franchise stores in Australia and internationally at a pace consistent with historical trends.