Sigma’s double-digit sales, profit growth ‘proves’ merger decision
Sigma Healthcare has reported double-digit growth in both sales and profit for the fiscal first half, powered by the addition of the Chemist Warehouse (CW) network.
The company’s revenue for the six months ended December 31 rose 15 per cent to $5.5 billion. Normalised EBIT jumped 18.7 per cent to $582.9 million, and NPAT grew 19.2 per cent to $392 million.
“As an integrated healthcare business, we see long-term opportunities for growth, headlined by sustained performance across our core domestic market, led by CW-branded stores,” said Sigma CEO and MD Vikesh Ramsunder.
Sales of CW stores in Australia grew 17.2 per cent to $5.1 billion, with like-for-like (LFL) sales up 15 per cent. Management attributed the increase to expanding the network, strong customer engagement, a stronger value proposition, and higher sales of GLP-1 medicines.
During the half, the company continued to implement its plans to reinvigorate the Amcal and Discount Drug Stores (DDS) brands. It has converted MyChemist franchise stores to Amcal and DDS franchises and expects to onboard 15 Amcal stores in the second half.
The addition of more than 400 owned brands during the half also contributed significantly to CW sales, with Wagner generics remaining a standout performer.
“CW is and always will be a house of brands,” Ramsunder said. “We are, however, also methodically growing our portfolio of owned and exclusive label products to close category gaps and expand the size of the market.”
In international markets, retail sales soared 24.5 per cent, with LFL sales up 11 per cent.
The company delivered $13 million in early synergies during the period, laying the foundations for the full $100 million per annum synergy target to be achieved by FY29.
The growth momentum has continued year to date, including the first seven weeks of the second half, with Australian CW store sales up 16.6 per cent. Growth in the international retail network also advanced.
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