Strong Post-Merger Earnings Growth
Sigma Healthcare Posts $10.83B FY26 Revenue in First Year After Merger
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Key Points
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The merger is accounted for as a reverse acquisition, with Chemist Warehouse deemed the acquirer for accounting purposes; the comparative period incorporates 12 months of Chemist Warehouse information, reflecting the group as the accounting survivor rather than Sigma.
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Chemist Warehouse branded network like-for-like sales rose 13.4% domestically, and international like-for-like sales increased 12.2%, underscoring ongoing growth strength beyond merger effects.
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Own and exclusive label activity is expanding, with about $1.0 billion in own and exclusive label sales and more than 470 new products launched in FY26, with these products approaching 10% of Chemist Warehouse branded store sales.
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New Zealand expansion accelerates, with 75 stores delivering over 20% sales growth and a new NZ distribution centre scheduled to begin operations in September 2026.
Sigma Healthcare reported its first full year as the merged Sigma/Chemist Warehouse group, posting normalised revenue of $10.83 billion and earnings of $732 million MarketScreener. The Australian pharmacy retailer's earnings growth outpaced revenue expansion, with normalised EBIT margins hitting 10.1% and the company signalling a fully franked final dividend of 2.0 cents per share TipRanks.
The merger drove strong momentum across both domestic and international operations. Chemist Warehouse's network sales reached $10.2 billion with 24 new stores added, bringing the total to 561 locations MarketScreener. International operations also expanded, with the store count rising to 98 and Ireland turning profitable for the first time TipRanks.
Earnings Growth Outpaces Revenue Expansion
Sigma's FY26 results show normalised EBIT of $1.09 billion, up 20.6% from the prior year TipRanks. This faster earnings growth reflects operating leverage rather than merger scale alone. Net profit after tax reached $732 million while net debt to normalised EBITDA sat at a healthy 0.57x, with the company maintaining a reduced debt facility of $1.4 billion MarketScreener.
Australian Pharmacy Network Adds 24 Stores
The Australian segment generated $10.4 billion in revenue with $1.034 billion in EBIT and a 9.93% margin MarketScreener. Chemist Warehouse's like-for-like sales jumped 13.4%, demonstrating momentum beyond the merger. The network now spans 561 locations after adding 24 stores in FY26, while own and exclusive label sales reached $1.0 billion with more than 470 new products launched TipRanks.
International Expansion Accelerates With New Zealand Growth
Sigma's international segment posted $421 million in revenue and $55.8 million in EBIT, with a 13.23% margin as Ireland returned to profitability MarketScreener. The company operates 98 stores internationally after opening 20 new locations. New Zealand stands out as a growth driver, with 75 stores delivering over 20% sales growth and a new distribution centre scheduled to open in September 2026 TipRanks.
Four Pillars Drive Long-Term Value Creation
Management outlined a growth strategy centred on domestic and international expansion, scaling own and exclusive label products, and capturing operating leverage TipRanks. Own and exclusive label items now represent nearly 10% of Chemist Warehouse branded store sales, signalling strong traction on the private label push. The board backed this momentum with a fully franked final dividend of 2.0 cents per share, bringing the total annual payout to 4.0 cents MarketScreener.
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