Sigma Healthcare Limited (ASX:SIG) Announces FY25 Financial Results and Merger with Chemist Warehouse Group
Financial Performance
Sigma Healthcare Limited reported normalised revenue of $4.8 billion for FY25, marking a 50.9% increase. Normalised EBITDA rose by 79.3% to $93.8 million, and EBIT grew by 183.5% to $68.0 million. The normalised NPAT surged by 878% to $41.9 million. Statutory figures showed revenue up by 45.7% to $4.8 billion, but EBITDA decreased by 7.9% to $47.5 million and EBIT declined by 6.7% to $21.7 million. Statutory NPAT resulted in a loss of $13.8 million, compared to a profit of $4.5 million in the previous year.
Operational Highlights
The FY25 results reflect Sigma’s successful merger with Chemist Warehouse Group effective from 12 February 2025. Key operational achievements include onboarding a new CWG supply contract from 1 July 2024, maintaining world-class operational metrics despite a 40% volume increase, securing a new 5-year wholesale industry agreement through the NPSA, and achieving an 8.5% like-for-like wholesale sales growth across Amcal and Discount Drug Stores brands. Shareholder approval was obtained for the merger, positioning the company as a leading ASX-listed healthcare entity.
Executive Comments
Sigma CEO and Managing Director Vikesh Ramsunder commented, “Over the last three years we have executed our strategy to build scale, drive efficiencies, simplify our business and enhance our margin. This laser focus has materially enhanced our operational performance, and these final stand-alone results illustrate the strong underlying performance of the business.” He added, “During this period, I was particularly proud of how we maintained our high standards of delivering and meeting the needs of all our customers despite the increase in volume which followed the onboarding of the new Chemist Warehouse supply contract and the significant management time that was dedicated to the merger.” Ramsunder concluded, “Looking ahead and having concluded the merger, our management teams are focused on seamless integration and delivering long term value to shareholders. We have created a leading wholesaler and retail franchisor with strong growth potential in Australia and progressively internationally.”
Future Outlook
With the merger complete, Sigma will not declare a dividend for these results. The new merged Board will determine the future dividend policy, anticipated to have a payout ratio of 50% to 70% of NPAT. The next financial results will cover the period to 30 June 2025, including 12 months of CWG business and Sigma’s performance from 12 February 2025 to 30 June 2025.
Motley Fool contributor Abbie Stokes 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 recommended BHP Group. 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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