Sigma Healthcare Building on Two Decades of Consistent Growth

Sigma Healthcare Limited (ASX:SIG)

Sigma Healthcare Limited (ASX:SIG), announced its withdrawal from Boots sale process on 15 June 2026. The company participated in the Boots sale process due to the chance of company's expansion in the UK through the well-established Boots brand and its extensive store network. However, following its initial assessment, it determined that the potential acquisition does not currently align with its strategic priorities and capital allocation objectives.

On 4 May 2026, Chemist Warehouse reported that strong sales momentum continued across both its Australian and international markets. The Australian CW-branded store network maintained strong year-to-date sales growth despite comparing against the structural uplift from sales generated by GLP-1 during the second half of FY2025. 

Sigma Healthcare also signed a Memorandum of Understanding (MoU) with Greenlight Healthcare Limited to facilitate the expansion of the Chemist Warehouse brand into the UK. Under the joint venture, the company will license the Chemist Warehouse brand and intellectual property and will provide retail support services which includes ranging, store layout, inventory management, and marketing assistance. GreenLight will be responsible for dispensary operations, professional services, and back-office support functions.

Following continued expansion across the Chemist Warehouse retail network in New Zealand, Sigma Healthcare and its NZ business partners have signed a long-term lease for a 23,000-square-metre distribution centre to support the network and enhance its  supply chain capabilities. 

On 26 February 2026, the company announced a fully franked ordinary dividend of AUD 0.02 per share. It delivered a strong performance in the first half of FY26, highlighting the strength and complementary nature of its partnership with Chemist Warehouse (CW). Normalised revenue increased by 14.9%, while operating leverage supported earnings growth, with EBIT rising 18.7%, EBIT margin expanding by 34 basis points, and EPS increasing 19.4%. Capital expenditure of $13.7 million was directed towards international store expansion, DC infrastructure, IT investments, and integration initiatives. Net cash flow from operating activities totalled $317.4 million . 

As an integrated healthcare business, Sigma Healthcare sees significant long-term growth opportunities, supported by sustained performance in its core domestic market, particularly through Chemist Warehouse-branded stores. The Chemist Warehouse business has grown steadily for the past two decades.

Outlook: 

The company expects to onboard nine Chemist Warehouse pharmacies for the second half of FY26 and 15 Amcal franchisees in Australia, alongside the addition of 11 Chemist Warehouse stores across its international markets. Making targeted investments to enhance scale and operational efficiency. Management expects to achieve the full $100 million per annum synergy target by FY29.

(Source: Company Announcements)