Sigma Healthcare has reported double-digit sales growth at Chemist Warehouse for the first fiscal quarter, reflecting the momentum that continued from last year as a result of the merger between the two businesses.
For the first quarter of FY26, Chemist Warehouse network sales jumped 17.9 per cent and like-for-like sales rose 14.7 per cent.
The company said the strong momentum the business delivered last year continued into this year. In FY25, Chemist Warehouse network sales rose 14 per cent, with like-for-like sales up 11.3 per cent.
Sigma CEO and MD Vikesh Ramsunder said that the first-quarter sales growth reflected a strong performance across key product categories and a stronger contribution from GLP-1 sales.
GLP-1s, which are weight-loss drugs such as Ozempic and Mounjaro, started to gather meaningful momentum in the second quarter of FY25, Ramsunder added.
The trading update was announced during Sigma’s annual general meeting on Tuesday, during which the company also shared its transformation and integration progress following its merger with Chemist Warehouse.
According to the company, the strategic intent of the merger was to create shareholder value and an enhanced customer value proposition from combining “the highly complementary logistics and warehousing expertise of Sigma and the pharmacy retail and marketing expertise of Chemist Warehouse”.
Last year, Sigma’s revenue surged 82.2 per cent to $6 billion and EBITDA grew 33.6 per cent to $824 million. As a result, the company upgraded its merger synergy from $60 million per annum to $100 million per annum.
“It has only been 252 days since our merger was completed, and the reality since merger is that it has so far delivered everything we anticipated and more,” said Sigma chairman Michael Sammells.
The company currently has a three-year debt facility of $1.5 billion, which will provide “significant headroom” to pursue growth ambitions, Sammells added.
CEO Ramsunder said ensuring a seamless integration of the businesses will remain a top priority for the years ahead.
Other growth initiatives include rolling out new stores domestically and internationally, revitalising the Amcal and Discount Drug Stores chains, and boosting own and exclusive products to support margin and differentiation.
This article was first published on Inside Retail.
