The Sigma Healthcare Ltd (ASX: SIG) share price is under the spotlight after the Chemist Warehouse owner reported a FY27 sales update.
Sigma Healthcare is the owner of Chemist Warehouse, Amcal and Discount Drug Stores.
Solid sales update
The company is holding its annual general meeting (AGM) today and it gave a trading update for Chemist Warehouse branded stores in Australia and international markets.
With its Australian Chemist Warehouse stores, it has maintained “strong sales momentum” with sales up 12.1% for the period 1 July 2026 to 16 October 2026. This was powered by like-for-like (LFL) sales growth of 9.8%.
The company said that some discretionary categories such as ladies’ fragrances, vitamins and supplements are experiencing softness as consumers adjust their buying behaviour in line with cost-of-living pressures.
However, the company noted that its business model is very defensive and resilient. The Chemist Warehouse ability to offer breadth and depth with its discounts, providing increased opportunities through the economic cycle.
It’s seeing stronger performance in other less discretionary categories, such as beauty, healthcare and GLP-1 supporting products.
Sigma Healthcare said that the growth is encouraging as it has now cycled the initial structural uplift from the introduction of GLP-1 sales.
It expects oral GLP-1 formulations to enter the market in the second half of FY27 to further enhance ‘accessibility’ for patients and sales growth in its network.
For the international store network, assuming foreign currency exchange rates hadn’t changed, sales grew by 30.2% for the period 1 July 2026 to 30 September 2026. This was powered by LFL sales growth of 15.8%.
Store growth
Sigma Healthcare said that its global pharmacy network is approaching 1,000 stores. Despite its growth, the Australian Chemist Warehouse network still represents less than 10% of the country’s more than 5,900 community pharmacy licences.
The company said that there’s still a good opportunity to grow the Chemist Warehouse branded store network, which together with the revitalisation of Amcal and Discount Drug Stores provides a “meaningful runway for disciplined domestic growth”.
In the first half, it remains on track to onboard 14 Chemist Warehouse stores and 42 Amcal & Discount Drug Stores in Australia, as well as a further 19 stores internationally.
Outlook for the Sigma Healthcare share price
The company said that for the rest of the half, it expects Chemist Warehouse branded stores to deliver double-digit sales growth.
I think Sigma Healthcare is one of the impressive, large ASX shares. Its international growth runway is compelling and overseas growth is significantly stronger than Australia.
I’d be happy to make a small investment today and invest more on any price weakness.
