Sigma Healthcare Posts 18.7% EBIT Rise on $5.5bn Revenue Surge
Sigma Healthcare has delivered a robust first half of FY26, posting a 15% rise in revenue driven by strong domestic and international sales growth, alongside operational synergies and strategic store expansions.
- Revenue up 14.9% to $5.5 billion
- Normalised EBIT increased 18.7%, NPAT up 19.2%
- Chemist Warehouse domestic sales grow 17.2%, international sales surge 24.5%
- 13 new domestic and 12 international Chemist Warehouse stores opened
- Synergies of $13 million achieved, targeting $100 million by FY29
Strong Financial Performance
Sigma Healthcare has reported a compelling set of results for the first half of FY26, with revenue climbing nearly 15% to $5.5 billion. This growth was underpinned by an 18.7% increase in normalised EBIT and a 19.2% rise in net profit after tax, signalling effective operational execution and market demand. The company’s earnings per share also grew by 19.4%, reflecting strong profitability enhancements.
Driving Growth Through Chemist Warehouse
The Chemist Warehouse (CW) brand remains the powerhouse behind Sigma’s expansion. Domestic CW branded store sales surged 17.2%, with like-for-like sales up 15%, supported by the addition of 13 new Australian stores and refurbishment of 18 franchisee stores. Internationally, CW stores saw a remarkable 24.5% sales increase, with 12 new stores opened across key markets including New Zealand, Ireland, and Dubai. This international momentum is a critical pillar of Sigma’s growth strategy.
Product Differentiation and Operational Efficiency
Sigma continues to expand its portfolio of owned and exclusive label products, which now represent about 10% of CW branded store sales. Over 400 new product lines were introduced in the half, contributing to a 15.7% increase in owned/exclusive label sales. On the operational front, the company is leveraging its scale to drive efficiencies, consolidating distribution centres and integrating supply chains. These efforts have delivered $13 million in synergy benefits so far, on track for a $100 million annual target by FY29.
Balance Sheet Strength and Capital Management
Maintaining a conservative financial position, Sigma’s net debt to EBITDA ratio improved to 0.6x, down from 0.85x at the end of FY25. Capital expenditure of $13.7 million was directed towards international store openings, distribution centre infrastructure, IT investments, and integration activities. The company declared a 2.0 cents per share interim dividend, reflecting confidence in ongoing cash flow generation and shareholder returns.
Outlook and Strategic Priorities
Looking ahead, Sigma expects continued momentum in the second half of FY26, with plans to open additional Chemist Warehouse and Amcal franchise stores domestically and internationally. The company remains focused on executing its four strategic pillars: domestic market leadership, international expansion, product differentiation, and operating leverage. Investments in technology, including AI-driven efficiencies, are set to further enhance operational performance.
Bottom Line?
Sigma’s strong half-year results and disciplined execution set the stage for sustained growth, but investors will watch closely how international expansion and synergy targets unfold.
Questions in the middle?
- How will Sigma manage competitive pressures in its expanding international markets?
- What impact will ongoing supply chain investments have on margins and cost control?
- Can Sigma sustain its rapid franchise network growth without diluting brand strength?
