Key Highlights

  • Revenue increased 15.5% to $10.8 billion, with Normalised EBIT up 20.6% to $1,090.0 million and Normalised EBIT Margin rising to 10.1%.
  • Normalised NPAT increased 22.3% to $732.3 million, while net Debt reduced to $663 million, with a Debt to Normalised EBITDA ratio of 0.57 times.
  • International segment EBIT rose 91.3% to $55.8 million, with Ireland turning profitable for the first time as the network expanded to 98 stores.
  • $32.6 million of integration synergies were delivered during the year, tracking toward a $100 million per annum target by FY29.

Sigma Healthcare Limited (ASX:SIG) share price was trading at $2.68, down 5.63% or $0.16 on the day, as at 27 August 2026, 10:54am AEST, as the company released its FY26 results, its first full financial year following the Merger with the Chemist Warehouse Group. Revenue for the year was $10.8 billion, up 15.5%, while Normalised EBIT increased 20.6% to $1,090.0 million, with Normalised EBIT margin expanding to 10.1% from 9.6% in FY25. Normalised NPAT rose 22.3% to $732.3 million.

CEO and Managing Director Vikesh Ramsunder said FY26 demonstrated that Sigma is not simply larger after the merger, but structurally stronger, with a network approaching 1,000 pharmacies globally. He noted that Normalised proforma EBIT for FY24, at the time of the merger as disclosed in the prospectus, was $605.5 million, meaning the company has delivered growth of over 80% in normalised EBIT over two years.

Australian Segment Remains the Core Growth Engine

The Australian segment reached revenue of $10.4 billion, up 14.9%, translating into Normalised EBIT of $1,034.2 million, up 18.3%. The company said sales had benefited from a structural uplift in consumption of GLP-1 medicines across the market, and despite these medicines being dilutive to margin percentage, the Australian segment Gross Margin was broadly maintained at 17.6% in FY26.

During the year, 24 Chemist Warehouse branded stores were added to the Australian network to reach 561, with 18 stores also refurbished, contributing to CW branded network sales growth of 15.9% and like-for-like sales growth of 13.4%. CW branded network sales to consumers were around $10.2 billion. The company said its focus on reinvigorating the Amcal and Discount Drug Stores brands is progressing, with the number of stores across that network expected to return to growth in FY27, supported by a pipeline of 82 stores.

International Expansion Accelerates

The International segment achieved revenue of $421.4 million, up 33.0% for the year, contributing $55.8 million to Normalised EBIT, up 91.3%. The company opened 20 stores offshore to reach 98, with like-for-like sales growth of 12.2%, and network sales to consumers from international stores exceeded $1.6 billion, up 23.3%. New Zealand led growth with sales up more than 20% from 75 stores, and a new distribution centre in New Zealand is set to commence operations in September 2026.

The 18-store network in Ireland delivered 45.0% sales growth and is now contributing to profit as the Business achieves scale, marking Ireland's first profitable period. The company's measured entry into the United Kingdom, through a joint venture with Greenlight Healthcare, is progressing to plan, with two stores expected to open by the end of calendar year 2026. The company has also refocused its China strategy toward online operations, reducing seven physical stores and retaining only two stores in that market.

Balance Sheet, Synergies and Dividend

Net Debt declined to $663.2 million, representing 0.57 times Normalised EBITDA, with the company reducing the size of its debt Facility to $1.4 billion while retaining what it described as significant headroom to fund growth ambitions. Capital Expenditure was limited to $56.7 million for the year. The company extracted $32.6 million of integration synergies during the year, in line with expectations, with one-off costs to achieve those synergies of $25.9 million, also consistent with expectations, as the company progresses toward its $100 million per annum synergy target by FY29.

Consistent with its targeted Dividend Payout Ratio of 50% to 70% of NPAT, the Board declared a fully franked final dividend of 2.0 cents per share, in addition to the Interim Dividend of 2.0 cents per share paid in March 2026. The dividend will be paid on 22 September 2026, with an ex-dividend date of 3 September and Record Date of 4 September.

Conclusion

Sigma Healthcare's FY26 results reflect the delivery of double-digit revenue and Earnings growth in its first full year of operation following the Chemist Warehouse merger, with the Australian segment continuing to anchor performance while the International segment moves from an emerging to an increasingly material contributor to Group earnings. With integration synergies tracking toward the company's FY29 target, a conservatively leveraged balance sheet, and continued network expansion planned across Australia, New Zealand, Ireland and the newly entered UK market, the company's FY27 trajectory will be shaped by its ability to sustain like-for-like sales growth while converting its expanding international footprint into further profit contribution.