Key Highlights

  • Group revenue rose 15.5 per cent to $10.8 billion and normalised EBIT rose 20.6 per cent to $1.09 billion in FY26, with net debt of $663 million equal to 0.57 times normalised EBITDA.
  • Sigma paid fully franked dividends totalling 4 cents per share for the year and delivered $32 million of annualised synergy benefits at a one-off cost of $26 million.
  • Australian Chemist Warehouse sales are up 12.1 per cent to 16 October, with like-for-like sales up almost 10.0 per cent, while international sales rose 30.2 per cent in the three months to 30 September.
  • A United Kingdom joint venture with Greenlight Pharmacy is due to open two London stores before Christmas and three more in 2027, after Sigma decided not to proceed with the potential Boots acquisition.

Sigma Healthcare Limited (ASX:SIG) used its 2026 Annual General Meeting to set out FY26 results, governance arrangements and a trading update for the current financial year. Chairman Michael Sammells said group revenue rose 15.5 per cent to $10.8 billion and normalised EBIT (earnings before interest and tax) rose 20.6 per cent to $1.09 billion in the first full 12 months since Sigma merged with Chemist Warehouse Group. Managing Director and CEO Vikesh Ramsunder said Australian Chemist Warehouse sales were up 12.1 per cent in the current financial year to 16 October.

FY26 Results and Governance Remarks From the Chair

Sammells called FY26 the first full 12-month period operating as a merged group, at the second AGM since the merger. He said a prospectus issued ahead of the merger disclosed pro forma EBIT of $605 million for FY24. Net debt at year end was $663 million, or 0.57 times normalised EBITDA, and fully franked dividends totalled 4 cents per share.

On governance, Sammells said all Board committees are chaired by independent non-executive directors and that he chairs the Related Party Independent Board Committee, which has no materiality threshold. New post-merger arrangements have been on the same terms for related and non-related parties, franchise agreements are standardised with no preferential deals for founders, and related-party property leases are supported by independent valuer reports. He said reaching the goal of 900 Chemist Warehouse stores in Australia requires more non-related-party franchisees, so the share of related-party transactions is expected to fall. He also acknowledged that a majority of directors are not independent. FY26 also included Sigma's first mandatory climate-related financial disclosures under AASB S2.

Store Growth, Synergies and the United Kingdom Entry

Ramsunder said the global pharmacy network exceeds 950 stores. Australia had 561 Chemist Warehouse stores at 30 June after the network added 24 stores and refurbished 18. Chemist Warehouse sales grew 16 per cent, while international sales rose 23 per cent with 20 stores added, led by New Zealand. Ireland is now profitable. The Australian supply chain distributed more than 579 million units, 35 million more than the prior year.

Sammells said Sigma announced a measured entry into the United Kingdom in May through a joint venture with Greenlight Pharmacy, with two London stores expected before Christmas and three more planned for 2027. Sigma is progressively closing its physical presence in China. It also took part in due diligence on the Boots business before deciding not to proceed.

On integration, Sigma achieved $32 million of annualised synergy benefits during the year at a one-off cost of $26 million. Support centres were consolidated in Preston, the standalone e-commerce distribution centre was closed, and Western Australian volumes moved into the Canning Vale distribution centre, with South Australian volumes moving to Pooraka since year end. Applications are being integrated into Sigma's SAP platform, which Ramsunder said does not affect store systems.

Trading Update to 16 October

Australian Chemist Warehouse sales are up 12.1 per cent in the financial year to 16 October, above the 10-year compound annual growth rate of 11.3 per cent, with like-for-like sales up almost 10.0 per cent. Ramsunder said discretionary categories such as ladies' fragrances and vitamins and supplements are experiencing softness as consumers adjust to cost-of-living pressures, while beauty, healthcare and GLP-1 supporting products performed well. He said Sigma has cycled the initial structural uplift from GLP-1 sales and anticipates oral GLP-1 formulations entering the market in the second half of FY27.

International sales for the three months to 30 September rose 30.2 per cent, with like-for-like sales up 15.8 per cent. The Australian Chemist Warehouse network is less than 10 per cent of the country's more than 5,900 community pharmacy licences. In the first half, Sigma is on track to onboard 14 Chemist Warehouse stores and 42 Amcal and Discount Drug Stores in Australia, plus 19 stores internationally, and expects double-digit Chemist Warehouse sales growth for the balance of the half.

Taking Stock of the Meeting

Sigma Healthcare Limited (ASX:SIG) reported FY26 revenue of $10.8 billion, normalised EBIT of $1.09 billion and net debt of $663 million, then paired those figures with a trading update showing Australian Chemist Warehouse sales up 12.1 per cent and international sales up 30.2 per cent. Sammells listed the Board's priorities for FY27 as capturing remaining integration benefits, sustaining domestic momentum, expanding internationally in a measured way and maintaining financial discipline.