Chemist Warehouse profit surges 30% ahead of Sigma merger
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More news: Within its results, Sigma noted that Chemist Warehouse’s profit surged 28.6% during the six months to 31 December 2023.
The pharmacy chain’s sales rose 9% within its Australian stores and it posted a lift of 13.5% in total network sales.
The company has 557 Australian stores and 63 international stores. During the half, it opened nine stores in Australia and nine international stores.
Sigma Healthcare gains on ASX after posting profit leap
More news: Shares in Sigma Healthcare lifted on the ASX after as the pharmacy wholesaler more than doubled its profit for the year to January 2024.
Sigma shares gained 4.5% to $1.27 by 12:40pm AEDT.
Sigma Healthcare lifts profit ahead of Chemist Warehouse merger
The news: Pharmacy wholesaler Sigma Healthcare has reported its full-year profit more than doubled ahead of an impending merger with retail chain Chemist Warehouse.
The numbers: Sigma said net profit for the year to 31 January 2024 climbed 149% to $4.51 million. Overall sales were down 9.2% to 3.32 billion, reflecting the disposal of stores and decline in sale of rapid antigen tests.
It will pay a final dividend of 0.5 cents a year, steady from a year ago.
The context: Chief executive Vikesh Ramsunder said the strong result was the outcome of a turnaround strategy implemented over the past two years, which has seen cost reduction and divestment of non-core assets. Sigma said the results include initial merger costs of $8.2 million.
The company announced a merger in December that will bring together its wholesale pharmacy business and Amcal and Discount Drug Store pharmacy brands with larger rival Chemist Warehouse’s nearly-600 strong network of stores.
The $8.8 billion merger is subject to approval from the Australian Competition and Consumer Commission (ACCC).
The source: ASX announcement
