The Sigma Healthcare Ltd (ASX: SIG) share price is under the spotlight after announcing UK expansion plans for Chemist Warehouse and a trading update.
Sigma Healthcare’s main business is Chemist Warehouse, Australia’s largest chemist chain. Chemist Warehouse also has a presence in UAE, Ireland, China and New Zealand.
Chemist Warehouse expansion into UK
Sigma Healthcare has signed an agreement with Greenlight Healthcare that will see Chemist Warehouse enter the UK market.
Greenlight is an employee-owned pharmacy group founded in London in 1999. It currently has 22 stores in and around London.
Sigma will acquire a 75% interest in a number of stores, with 25% continuing to be held by Greenlight.
Under this joint venture, Sigma will licence the Chemist Warehouse brand and intellectual property, and provide retail support including ranging, store layout, inventory management and marketing support.
Greenlight will provide the dispensary and professional services requirements and back-office support.
The parties intend to identify Greenlight stores that can be developed or relocated into Chemist Warehouse stores.
The JV will initially rebrand and develop up to five stores, with the option for more stores in phase two if these are successful.
Chemist Warehouse trading update
The company announced its sales performance for Chemist Warehouse-branded stores.
Between 1 July 2025 to 30 April 2026, the Australian store network has seen total sales growth of 16.7%, with like for like (LFL) sales growth of 14.4%.
The international Chemist Warehouse store network has seen total sales growth of 24.7% and LFL sales growth of 11.8%.
It noted that the Australian sales were strong despite cycling the structural uplift of GLP-1 sales in the second half of FY25. Growth in GLP-1 sales is expected to continue.
Sigma Healthcare also said that sales growth in the international stores in New Zealand, Ireland, Dubai and online in China have “continued to strengthen”.
New Zealand supply chain investment
The company has entered into a long-term lease agreement for a 23,000sqm distribution centre to service and strengthen its supply chain.
The temperature-controlled facility is 25km south of Auckland and will have a vault, cool room, dangerous goods and freezer facilities.
Sigma’s approximate A$40 million share of the capital expenditure will be invested through FY27, reflecting installation of racking, warehouse automation, equipment and technology.
The facility will start operating in September 2026, with automation expected to be fully functioning in the second half of 2027.
It’s targeting more than 100 Chemist Warehouse stores in New Zealand over the long-term. It had 70 locations as of the HY26 result.
Final thoughts on the Sigma Healthcare share price
The fact the company is expanding its growth potential by entering the UK market is exciting, but perhaps unsurprising considering it was already in nearby Ireland.
Sigma Healthcare is a high-performing business with both its core operations and its growth areas doing well. I’d be happy to be a long-term shareholder at the pre-open valuation.
