Highlights

• FY26 Revenue of $10.8 billion (up 15.5%), normalised EBIT of $1,090 million (up 20.6%), normalised NPAT of $732.3 million (up 22.3%).

• 561 Australian Chemist Warehouse branded stores reached, with 24 new stores and 18 refurbishments during FY26; like-for-like sales +13.4%.

• $32.6 million of integration synergies delivered in FY26, on track to reach the $100 million annual synergy target by FY29.

• International segment EBIT up 91.3% to $55.8 million as growth accelerates and Ireland achieves profitability for the first time.

Sigma Healthcare Limited (ASX:SIG) is a major Australian healthcare company resulting from the transformative Merger of Sigma Healthcare and the Chemist Warehouse Group (CWG) in FY25. The combined entity operates the Chemist Warehouse retail pharmacy network (Australia's largest pharmacy chain) alongside Sigma's wholesale pharmaceutical distribution business, health stores (Amcal, Discount Drug Stores), and an expanding international presence across New Zealand, Ireland, China, and other markets. FY26 represents the first full financial year post-merger, demonstrating the scale and Earnings power of the combined platform.

Recent Development

Released on 27 August 2026, Sigma Healthcare reported its first full-year post-merger results: revenue of $10.8 billion (up 15.5%), normalised EBIT of $1,090.0 million (up 20.6% with Margin improving to 10.1%), and normalised NPAT of $732.3 million (up 22.3%). Net Debt reduced to $663 million, with Debt to Normalised EBITDA at 0.57x — a conservatively leveraged balance sheet. The Business has nearly doubled normalised EBIT from the $605.5 million pro-forma FY24 figure disclosed at merger announcement.

The Australian segment was the growth engine: revenue of $10.4 billion (up 14.9%) and normalised EBIT of $1,034.2 million (up 18.3%), demonstrating operating Leverage on existing infrastructure. Chemist Warehouse branded network sales reached approximately $10.2 billion, with like-for-like sales of 13.4%. CW added 24 Australian stores to reach 561, with 18 refurbishments. GLP-1 medicines (weight loss drugs) provided a structural sales uplift, with Sigma maintaining Australian gross margin at 17.6% despite GLP-1s being dilutive to margin percentage. International segment EBIT grew 91.3% to $55.8 million on revenue of $421.4 million (up 33%), with Ireland becoming profitable for the first time. $32.6 million in synergies were delivered in FY26, on track for $100 million annually by FY29. A solid pipeline of 82 stores is planned for FY27.

Sector Context

Sigma Healthcare's Chemist Warehouse operates in the structurally growing Australian pharmacy and health retail market, benefiting from an ageing population, growing health awareness, and the rapid adoption of GLP-1 weight management medicines — a category expected to generate sustained high-level demand. The scale of the Chemist Warehouse network (561 Australian stores, approximately $10.2 billion consumer sales) creates enormous purchasing power and supplier leverage. The wholesale distribution arm serves the broader pharmacy market beyond CW stores, providing a second earnings layer. International expansion (particularly Ireland at first profitability) demonstrates the cross-border applicability of the Chemist Warehouse model.

Risks and Uncertainties

At $10.8 billion in revenue, Sigma is now one of Australia's largest companies — sustaining 15-20% revenue growth from this base becomes progressively harder as scale grows. GLP-1 medicine growth, while a near-term revenue tailwind, is dilutive to gross margin percentage and may attract regulatory attention if drug costs create budget pressure on Australian Government pharmaceutical spending. The synergy delivery program ($32.6 million in FY26 toward $100 million by FY29) requires sustained integration execution. International expansion carries market entry risks, particularly in newer markets. The $663 million net debt, while conservative at 0.57x EBITDA, limits the Balance Sheet flexibility for major Capital returns.

Catalysts to Watch

Progress toward the $100 million annual synergy target (from $32.6 million in FY26) as integration deepens is the primary medium-term earnings catalyst. The South Australian DC (distribution centre) consolidation in Q1 FY27 will contribute to cost efficiency. The pipeline of 82 Amcal/Discount Drug Stores for FY27, along with continued CW network growth, underpins revenue growth. International momentum — particularly Ireland's first profitable year and expansion of the CW model offshore — could materially enhance the growth narrative. Any GLP-1-related government regulatory action on pharmaceutical subsidies could be a risk catalyst requiring close monitoring.

Final Thoughts

Sigma Healthcare (ASX:SIG) has convincingly demonstrated the earnings power of the Chemist Warehouse merger in its first full financial year together — normalised EBIT nearly doubling from the FY24 merger announcement baseline in just two years. The combination of scale-driven operating leverage, synergy delivery, GLP-1 tailwinds, and international growth creates a compelling multi-year earnings growth narrative from one of Australia's most powerful retail health brands.