Sigma Healthcare Limited (ASX:SIG) Reports Record Sales and Margin Growth
Sales Performance Highlights
Chemist Warehouse Group (CWG) announced a robust performance for the first half of the financial year 2025, reporting record sales and significant margin expansion. Total sales for the Chemist Warehouse Retail Network reached $5,154 million, reflecting a 13% increase compared to the previous year. Notably, sales in Australia grew by 12.3%, while international sales saw an 18.4% rise.
The company’s like-for-like sales growth also demonstrated solid performance, with Australia achieving 10.4% growth and international markets delivering 9.0%.
Financial Metrics
The trading update revealed substantial improvements in financial indicators. CWG’s earnings before interest and tax (EBIT) rose to $437.9 million, marking a 35% increase from $324.3 million in the prior year. The EBIT margin improved by 400 basis points to 22.3%. Profit before tax (PBT) also increased by 36.1% to $436.8 million.
Executive Insights
Mario Verrocchi, CEO of Chemist Warehouse, expressed satisfaction with the results, noting, “CWG has delivered a record result for 1H FY25 with double digit Like-For-Like Retail Network Sales growth, aided by a strong trading performance in December.” He highlighted that the company opened 19 new stores during the period, including two in Dubai, and emphasized successful new supply agreements.
Verrocchi added that the merger with Sigma is on track to complete in February, reinforcing the company’s outlook for continued growth and expansion in 2025.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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