Sigma Healthcare (ASX:SIG) Shares Trail Over the Year

Sigma Healthcare (ASX:SIG) Shares Trail Over the Year - What Investors Need to Know

Sonal Goyal

06 October 2026 12:59 AM AEDT

Sigma Healthcare (ASX:SIG) Shares Trail Over the Year - What Investors Need to Know

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Sigma Healthcare Ltd (ASX:SIG), a pharmacy wholesaler and retail network operator following its Merger with the Chemist Warehouse Group, has recorded a decline in its share price over the past year despite higher earnings. Sigma Healthcare Ltd (ASX:SIG) shares were priced at $2.62, up 0.77% in today’s session, and are down 11.19% over the past year. The company announced its results for the year ended 30 June 2026 (FY26), its first full financial year after the merger, on 27 August 2026.

Business Model and Operational Footprint

Sigma distributes pharmaceutical and health products to pharmacies and operates the Chemist Warehouse network, earning wholesale and retail Revenue in Australia and internationally. It states that its network is approaching 1,000 pharmacies globally. During FY26 it added 24 Chemist Warehouse branded stores to the Australian network, and its network of 18 stores in Ireland delivered sales growth of 45.0%.

The Australian segment is described as the engine room of the business, with revenue of $10.4 billion. The International segment produced EBIT of $55.8 million, and Ireland became profitable for the first time. The company says Europe is the next frontier, with further stores expected to open by the end of calendar year 2026. Chemist Warehouse remains a house of brands, including own and exclusive label products.

Sector Dynamics

Pharmacy wholesale and retail Earnings depend on prescription and non-prescription volumes, government pricing and Subsidy settings, store network growth and category mix. Sigma states that sales have benefited from the structural uplift in consumption of GLP-1 medicines, which dilute Margin percentage, while the Australian gross margin was broadly maintained at 17.6%.

Sigma’s 11.19% one-year decline compares with a 23.97% fall for Resmed Inc (ASX:RMD) and a 22.66% fall for Brambles Ltd (ASX:BXB). Sigma is up 0.77% today at $2.62.

Among the 20 ASX-listed companies in this group of results, Sigma Healthcare Ltd’s one-year change of down 11.19% ranks 12 of 20, where 1 is the strongest performer over the period.

FY26 Results Release

Comparisons are with normalised pro forma FY25. Revenue was $10.8 billion, up 15.5%. Normalised EBIT was $1,090.0 million, up 20.6%, with a margin of 10.1%, up from 9.6%. Normalised NPAT was $732.3 million, up 22.3%. Net Debt reduced to $663 million, with a debt to normalised EBITDA ratio of 0.57x. Integration synergies of $32.6 million were delivered, with the company on track to reach $100 million per annum by FY29.

Australian segment revenue rose 14.9% and normalised EBIT rose 18.3% to $1,034.2 million. International segment EBIT rose 91.3% to $55.8 million. The company notes that normalised pro forma EBIT for FY24 at the time of the merger was $605.5 million, so FY26 normalised EBIT is up more than 80% over two years.

The company expects the number of stores across the network to return to growth in FY27, with a pipeline of new stores, and expects GLP-1 sales growth to be enduring as it cycles elevated early period sales growth.

CEO Vikesh Ramsunder said the company is structurally stronger after the merger and that the Australian infrastructure already in place gives a clear runway for growth. The company reports that its Australian gross margin of 17.6% was broadly maintained despite GLP-1 sales and that revenue growth converted into faster earnings growth through operating leverage.

Growth Catalysts and Critical Operating Risks

Growth catalysts identified include network expansion in Australia, Ireland and Europe, integration synergies of $100 million per annum by FY29, GLP-1 related sales and flow-on benefits for adjacent categories, and Operating Leverage as sales to stores increase.

Operating risks include the dilution of margin percentage from GLP-1 medicines, the need to cycle elevated early period sales growth, store numbers that had not been growing before FY27, execution of integration, dependence on the Australian segment for most earnings, and regulatory and pricing settings for pharmaceuticals. Normalised and pro forma measures are not statutory results.

Where Things Stand

Sigma reports higher revenue, earnings and synergies with low leverage, while its shares are lower over twelve months. Reference points ahead include new store openings by the end of calendar 2026 and progress toward $100 million of annual synergies by FY29.

FAQs

Q: What did Sigma Healthcare Ltd (ASX:SIG) report for FY26?

A:Revenue of $10.8 billion (up 15.5%), normalised EBIT of $1,090.0 million (up 20.6%), normalised NPAT of $732.3 million (up 22.3%) and net debt of $663 million.

Q: What are Sigma’s synergy targets?

A:Integration synergies of $32.6 million were delivered in FY26, and the company is on track to reach $100 million per annum by FY29.

Q: How have Sigma Healthcare (ASX:SIG) shares performed over the past year?

A:Shares are down 11.19% over twelve months and were up 0.77% today at $2.62.

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