Australia’s largest pharmacy operator, Sigma Healthcare, reported a 22% rise in full-year net profit to A$732.3 million for the 12 months ended June 2026, driven by a 15.5% increase in revenue to A$10.8 billion. Normalized earnings before interest and tax climbed 20.6% to A$1.098 billion, while gross profit rose 15.2% to A$1.96 billion. The group maintained a gross margin of 18.1%, though the cost of doing business improved by 47 basis points to 8.6% of sales.
The company delivered a final dividend of A$0.02 per share, bringing total dividends for the year to A$0.04 per share, representing a payout ratio of approximately 63%. Free cash flow totaled A$500.4 million, while net debt declined to A$663 million from A$752 million a year earlier, leaving a net debt-to-EBITDA ratio of 0.57 times. Return on equity stood at 16%, with an EBIT margin of 10.1%, up 43 basis points.
Operational performance showed strength in the domestic market, where revenue rose 14.9% to A$10.4 billion, contributing nearly 93% of group revenue growth. The Chemist Warehouse network expanded to 561 stores, generating A$10 billion in sales, supported by 24 new openings and 13.4% like-for-like growth. International operations grew revenue by 33% to A$421.4 million, with EBIT nearly doubling to A$55.8 million as margins expanded to 13.2%. Ireland reported positive earnings for the first time, while New Zealand’s store count reached 75 and the UAE opened three locations.
Sigma achieved A$32 million of its A$100 million annualized synergy target from the 2024 merger, though one-off costs reached A$26 million. Capital expenditure totaled A$56.7 million, and the group maintained its A$100 million synergy target for FY2029. Management outlined plans for 74 store openings and refurbishments in the first half of FY2027, including 13 new Chemist Warehouse locations and 19 international expansions. A joint venture with Greenlight Healthcare Group will support the UK entry, with two stores planned before Christmas.
Investor reaction was negative, with shares falling 6.16% to A$2.665, erasing gains from the profit report. The stock remains 16.7% below its 52-week high of A$3.20 and 3.3% above its low of A$2.58.
