Sigma Healthcare Ltd (ASX: SIG) shares are edging higher on Thursday.
In morning trade, the pharmacy chain giant's shares are up 1.5% to $2.95.
This follows the release of its full year results before the market open.
Sigma shares edge higher on results day
Investors have been buying the company's shares today after it revealed strong revenue and earnings growth in FY 2025.
Firstly, it is worth highlighting that these results are for the 12 months ended 31 January and therefore does not include the Chemist Warehouse business. That transaction completed on 12 February 2025.
According to the release, Sigma's net revenue was up 50.9% to $4.8 billion for FY 2025. A key driver of this was a supply contract from Chemist Warehouse which started on 1 July.
Things were even more impressive for its underlying earnings, with EBITDA up 79.3% to $93.8 million and EBIT up 183.5% to $68 million. And on the bottom line, underlying net profit after tax jumped 878% to $41.9 million.
Its statutory result wasn't as impressive, with the company recording a net loss of $13.8 million. Though, this includes $43.5 million of costs relating to the Chemist Warehouse merger, among other one-offs.
No dividend was declared with its results. The company advised that directors of the new merged board will meet to determine its future dividend policy. This is expected to see the company adopt a dividend payout ratio of around 50% to 70% of net profit after tax.
Management commentary
Sigma's CEO, Vikesh Ramsunder, was very pleased with the results. He said:
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.
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.
Outlook
No guidance has been provided, but management spoke positively about the outlook of the merged company. 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
The next financial results to be reported by Sigma will be for the period to 30 June 2025. It notes that these results will include 12-months results from the Chemist Warehouse business and incorporate Sigma's financial performance from 12 February 2025 to 30 June 2025.
