Sigma Healthcare Ltd (ASX: SIG) shares are climbing on Tuesday morning.
At the time of writing, the pharmacy giant's shares are up 4.5% to $2.96.
The move follows an update released after the market close on Monday ahead of the company's presentation at the 2026 Macquarie Australia Conference.
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What is lifting Sigma shares?
Investors appear to be responding positively to an update showing strong Chemist Warehouse sales momentum, a planned entry into the UK market, and further investment in New Zealand.
According to the release, sales across the Australian Chemist Warehouse branded store network increased 16.7% for the financial year to date through to 30 April 2026. Like-for-like sales were up 14.4% over the same period.
Internationally, Chemist Warehouse branded store sales increased 24.7% for the financial year to date through to 31 March 2026, with like-for-like growth of 11.8%.
Chemist Warehouse momentum continues
A key highlight from the update is the ongoing performance of the Australian Chemist Warehouse network.
Sigma noted that growth has remained strong even as it cycles the structural uplift from GLP-1 medicine sales in the second half of 2025.
Management expects growth in GLP-1 sales to continue. This is good news given how it also highlighted that GLP-1 customers have an average basket size 40% higher in units.
UK expansion announced
Sigma has revealed that it has signed a memorandum of understanding with GreenLight Healthcare to launch Chemist Warehouse in the UK market.
GreenLight is an employee-owned pharmacy group founded in London in 1999, with 22 stores in and around London.
Under the proposed joint venture, Sigma will acquire a 75% interest in a number of stores, with GreenLight retaining 25%. Sigma will licence the Chemist Warehouse brand and provide retail support, including ranging, store layout, inventory management and marketing.
The first phase will focus on rebranding and developing up to five stores, with the first site planned for Hoxton Street in northeast London.
Management commentary
Commenting on the update, Sigma's CEO, Vikesh Ramsunder, said:
Our operational performance is pleasing with momentum sustained throughout the year reinforcing the defensive nature of our business model and continued execution of our growth strategy.
International expansion is one of our four key strategic growth pillars. Having proven that the Chemist Warehouse model resonates with customers in other markets, including New Zealand and Ireland, the JV with GreenLight now provides a measured market access into the UK.
Ramsunder also touched on global geopolitical challenges that retailers are facing. He adds:
Sigma is currently well placed to navigate the global geopolitical challenges impacting many businesses. We are absorbing increased fuel costs within existing financial targets and hold significant inventory in our DC network to service the market. We are currently not seeing any material disruption in our ability to source or deliver products or services at this point.
