Sigma Healthcare shares boosted by Chemist Warehouse growth
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The news: Shares in Sigma Healthcare lifted in morning trade after the pharmacy wholesaler reported first-half sales figures for Chemist Warehouse, as it nears completion of its merger with the retail chain.
The numbers: Sigma shares rose 1.9% to $2.75 by 11:15am AEDT, extending gains of more than 185% over the last 12 months.
Chemist Warehouse reported retail network sales growth of $5.2 billion, up 13% compared to the prior corresponding period. EBIT increased by 35% and margins expanded by 400 basis points year on year.
Chemist Warehouse also opened 19 new stores during the half-year period, with its first two stores opening in Dubai.
The context: Chemist Warehouse CEO Mario Verrocchi said the company made "good progress" transitioning wholesale supply to Sigma to drive efficiency gains, as well as launching medicines company Wagner Pharma.
The merger with Sigma is expected to complete in February.
The source: ASX announcement
