Chemist Warehouse merger boosts growth prospects
Sigma Healthcare, owner of Chemist Warehouse, reported a 15% sales leap for the year to June 30, 2026, with normalized EBIT increasing 20.6% to $1.09 billion. The company’s Australian network continued to deliver like-for-like sales growth in the opening months of the current financial year.
CEO Vikesh Ramsunder noted that Sigma’s growth momentum continues across every market in which it operates, and they expect this to continue. Sigma will onboard 13 CW-branded stores across the Australian network and 19 CW stores internationally, including its entry into the UK market.
CW’s global reach now approaches 1000 stores. Management expects the Amcal chain and the Discount Drug Stores arm to return to growth, with a combined 42 stores to open across Australia in the current half. This expansion is part of Sigma’s growth strategy to increase its presence in the market.
Overall, Sigma’s sales rose 15.5% to $10.8 billion, with the Australian arm accounting for $10.4 billion, up 14.9%. Normalized net profit came in at $732 million, 22% better. The company’s Wagner Pharmaceuticals generics business grew more than 30%, with 88% of CW customers availing of the cheaper alternatives.
The board rewarded shareholders with a 2 cents-a-share final dividend, taking the full-year tally to 4c. GLP-1 prescriptions and other products have been driving sales growth, with the company launching over 470 new own and exclusive-label products during the year.
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As Sigma continues to expand its operations, consumers are likely to benefit from increased access to affordable healthcare products. The company’s growth strategy, which includes onboarding new stores and expanding its product offerings, is expected to drive continued sales growth and improve consumer health outcomes.
In the middle of this growth story, it’s clear that Sigma’s merger with Chemist Warehouse has provided the right prescription for growth. With a strong financial performance and a solid growth strategy, the company is well-positioned to continue delivering value to its shareholders and customers.
Ramsay Health Care, the biggest private hospital operator, reported a 19% surge in full-year net earnings to $364 million. Underlying EBIT grew by 11.5% to $1.162 billion, with revenue growing 5% to $18.68 billion.
CEO Natalie Davis described the year as one of continued improvement and delivery, with all regions delivering underlying earnings growth. The company’s core Australian arm grew revenue by 7.8% and EBIT by 11.2%, driven by an increase in activity growth and improved private health insurance indexation.
The UK arm also reported stronger earnings, despite lower National Health Service admission volumes. Shareholders will convene in late November to vote on the proposed separation of Ramsay’s stake in Ramsay Sante.
