Sigma Healthcare shares: 1H26 profit and sales leap

A senior pharmacist talks to a customer at the counter in a shop.

The Sigma Healthcare Ltd (ASX: SIG) share price is in focus today after the company reported 1H26 revenue of $5.5 billion (up 14.9%) and normalised NPAT of $392 million (up 19.2%).

What did Sigma Healthcare report?

  • Revenue increased 14.9% to $5.5 billion year-on-year
  • Normalised EBIT rose 18.7% to $582.9 million
  • Normalised net profit after tax (NPAT) up 19.2% to $392.0 million
  • Australian Chemist Warehouse (CW) branded store sales up 17.2%, with like-for-like sales up 15.0%
  • International retail network sales jumped 24.5% to over $807 million
  • Net debt reduced by $117.1 million to $635.1 million (0.6x normalised EBITDA)
  • Interim fully franked dividend of 2.0 cents per share declared, nearly 60% payout ratio

What else do investors need to know?

Sigma continued the expansion of its Chemist Warehouse branded network, adding 13 new Australian stores and growing to 550 stores nationwide. Internationally, the network also expanded, including the addition of new outlets in New Zealand and Ireland.

Integration and transformation programs remain on track, with $13 million of early synergies delivered during the half. Operating cash flow reached $317.4 million, and the company’s balance sheet remains conservatively leveraged, supporting future growth plans.

Sigma has also made progress reinvigorating the Amcal and Discount Drug Stores brands, converting MyChemist franchise stores and enhancing its owned and exclusive product lines.

What did Sigma Healthcare management say?

CEO and Managing Director Vikesh Ramsunder said:

Our first half performance reinforces the strength of Sigma. As an integrated healthcare business we see long-term opportunities for growth, headlined by sustained performance across our core domestic market, led by CW branded stores.

What’s next for Sigma Healthcare?

Sigma says momentum has continued into the early part of the second half of FY26, with Chemist Warehouse branded store sales in Australia up 16.6% and like-for-like sales up 14.4% year to date. The company expects benefits from its integration program to ramp up, with a $100 million annual synergy target set for FY29.

Management remains focused on expanding its retail footprint internationally, growing its portfolio of owned brands, and improving supply chain efficiency. Sigma believes its strong balance sheet and disciplined approach will help drive ongoing growth and shareholder value.

Sigma Healthcare share price snapshot

Over the past 12 months, Sigma Healthcare shares have remained flat, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.