Sigma Healthcare (SIG) H2 2025 earnings summary

Executive summary

• First full-year post-merger results show strong growth, with normalized EBIT up 41.4% to $834.5m and network sales reaching $10.3bn, a 14% increase year-over-year.

• Chemist Warehouse expanded to 674 stores globally, with the franchise network now at 881 stores, and like-for-like sales growth of 11.3% in Australia.

• Own and exclusive brand portfolio grew over 20%, with 269 Wagner generics launched and more than 3,000 products in the portfolio.

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

• Significant progress in distribution and logistics efficiencies, with volumes delivered up 29% and logistics cost per unit down 11%.

Financial highlights

• Revenue increased 82% year-over-year to $6.0bn, with pro-forma revenue at $9.6bn and pro-forma EBIT at $903.4m.

• Normalized NPAT attributable to owners rose 40% to $579.1m.

• Gross profit increased to $1.45bn, with cost management driving operating leverage.

• Operating cash flow was $599m, with high cash conversion of 83% and pre-tax operating cash flow at $693m.

• Dividend of 1.3cps declared, payout ratio maintained at 50–70% of NPAT.

Outlook and guidance

• FY26 has started with double-digit like-for-like retail network sales growth year-to-date.

• Continued rollout of Chemist Warehouse franchise stores in Australia and internationally at historical cadence.

• Focus on extracting $100m in annual synergies and launching new own and exclusive label products.

• Bulk of synergy benefits expected in FY27 and beyond.