The share price of Chemist Warehouse owner Sigma Healthcare Ltd (ASX: SIG) has risen 5% after giving a strong FY25 result update.
Sigma Healthcare is the company that owns Chemist Warehouse, Amcal and Discount Drug Stores.
FY25 result
Here are the highlights for report for the 12 months to 30 June 2025:
- Revenue grew 82% to $6 billion
- Underlying EBIT (EBIT explained) rose 41.4% to $834.5 million
- Statutory EBIT increased 32% to $767.9 million
- Underlying net profit increased 40.1% to $579.1 million
- Statutory net profit down 2.1% to $529.9 million
- Final dividend declared of $0.013 per share
The company said that it has reached 588 Chemist Warehouse stores across Australia, helping total sales increase 14% to $10.3 billion, with like for like sales growth across the Australian network up 11.3%.
It said that it delivered “robust sales growth in the franchise store network across the major product categories.”
During the year, it expanded its portfolio of own and exclusive brand products, with 269 products launched in the Wagner generics range in November 2024. Private and exclusive label product sales increased 20% for the year.
In New Zealand, the business said it reached $1 billion of retail network sales. It added 16 international stores across New Zealand, Ireland and UAE. However, it’s going to close the bricks and mortar stores in China over the next few years, with China to be served by the online channel.
The company noted that it’s benefiting from scale, with logistics costs down 11% per unit, as its volume distributed for the year exceeded 532 million units.
Outlook for Chemist Warehouse and the Sigma Healthcare share price
Pleasingly, the business decided to upgrade its synergy target upgraded to $100 million per year by the fourth year of implementation of the merger between Sigma and Chemist Warehouse.
The company said FY26 has started strongly, with double-digit like for like retail network sales growth.
It’s expecting to roll out more Chemist Warehouse stores at a fairly similar rate as it has historically in Australia and internationally.
The company also expects to continue to launch new own and exclusive label products to drive profit margin improvement.
It seems Chemist Warehouse still has plenty of growth potential ahead. I think the Sigma Healthcare share price could be a long-term buy, particularly if it can continue gaining traction in overseas markets.
