Sigma Healthcare FY26 earnings: Record profit as Chemist Warehouse merger delivers growth

The Sigma Healthcare Ltd (ASX: SIG) share price is in focus today after the company reported a 15.5% lift in revenue to $10.8 billion and a 20.6% surge in normalised EBIT to $1.09 billion for FY26, its first full-year result since merging with Chemist Warehouse Group.

What did Sigma Healthcare report?

• Revenue: $10.8 billion, up 15.5% year on year
• Normalised EBIT: $1,090.0 million, up 20.6%, with margin rising to 10.1%
• Normalised NPAT: $732.3 million, up 22.3%
• Net debt reduced to $663 million (Debt to Normalised EBITDA: 0.57x)
• Integration synergies delivered: $32.6 million, aiming for $100 million p.a. by FY29
• Fully franked final dividend: 2.0 cents per share (full year: 4.0 cents per share)

What else do investors need to know?

Sigma’s Australian business remains its “engine room”, contributing $10.4 billion in revenue and $1,034.2 million in normalised EBIT. The international arm is gathering momentum, delivering 33% revenue growth and doubling EBIT, with Ireland now profitable and a push into the UK market underway.

Sigma added 24 Chemist Warehouse branded stores in Australia, reaching 561 stores, while opening 20 new international outlets. The company continued to expand its own and exclusive-label products, with annual sales near $1 billion and the Wagner Pharmaceuticals generic business growing over 30%.

What did Sigma Healthcare management say?

Sigma’s CEO, Vikesh Ramsunder, said:

FY26 demonstrates that Sigma is not simply larger after the merger, it is structurally stronger. Our highly scalable business model is underpinned by defensive industry characteristics. With the Australian infrastructure already in place and a clearly defined runway to keep growing, we are confident the model will keep compounding value.

What’s next for Sigma Healthcare?

Sigma’s FY27 agenda centres on growing its network, driving operating leverage, and boosting product differentiation. The company aims to open 13 new Chemist Warehouse stores in Australia and 19 internationally in the first half, including its entry into the UK. Refreshed growth in the Amcal and Discount Drug Stores brands is also expected, with 42 new Australian stores on the way.

With a capital-light model and a solid balance sheet, Sigma is targeting sustained growth and long-term shareholder value, with over half of planned synergy savings still to be realised.

Sigma Healthcare share price snapshot

The Sigma Healthcare share price has underperformed the S&P/ASX 200 index (ASX: XJO) on a 12-month basis with a decline of almost 7%.

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The post Sigma Healthcare FY26 earnings: Record profit as Chemist Warehouse merger delivers growth appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.