Sigma Healthcare 1H25 Results Overview

Sigma Healthcare Limited (ASX:SIG) has reported its 1H25 results, showcasing a 17.3% growth in normalized revenue, including the successful onboarding of the Chemist Warehouse Group (CWG) supply contract. The company absorbed a significant volume growth of 57% in July while maintaining strong customer service metrics across its network. The proposed merger with CWG is expected to bring transformational change if approved. Additionally, Sigma was included in the ASX200 Index in May 2024, and the Board declared an Interim unfranked dividend of $0.005 per share payable on 17 October 2024.

Executive Commentary

Vikesh Ramsunder, CEO and Managing Director of Sigma Healthcare, highlighted the company's strategic execution, emphasizing the successful onboarding of the CWG supply contract and the absorption of significant volume growth in July. He also underlined the company's commitment to maintaining strong customer service metrics and the proposed merger with CWG, which is expected to bring transformational change if approved. Ramsunder expressed optimism about the company's performance and cost discipline, as well as its inclusion in the ASX200 Index and the declaration of an Interim unfranked dividend.

Summary and Outlook

Sigma Healthcare's 1H25 results demonstrate its strong performance, with a 17.3% growth in normalized revenue and successful absorption of significant volume growth. The company's strategic execution and cost discipline have positioned it for continued growth, with the proposed merger with CWG expected to bring transformational change if approved. Sigma's inclusion in the ASX200 Index and the declaration of an Interim unfranked dividend reflect its positive outlook. The company aims to deliver FY25 Normalized EBIT of between $50m and $60m, maintaining its medium-term EBIT margin target of 1.5% to 2.5%. Additionally, industry negotiations with the Government may present upside to guidance, and the proposed merger with CWG remains a key focus area, indicating a promising outlook for Sigma Healthcare.