Sigma Healthcare, the pharmaceuticals wholesaler and retailer that is about to get six times bigger with its reverse takeover of Chemist Warehouse, has upgraded its 2025 financial year (FY25) as a result of an improved operational performance.
Sigma said normalised earnings before interest and tax (EBIT) for the year ending 31 January 2025 would be between A$64 million and $70 million, compared with the $50 million to $60 million range announced in September 2024.
“The upgrade follows improved operational performance, including the strong execution of the new Chemist Warehouse supply contract that commenced on 1 July 2024, demonstrating our ability to efficiently absorb volume growth,” Sigma said in an Australian Securities Exchange release.
But the company said FY25 statutory net profit after tax would be significantly affected by non-recurring costs relating to the merger with Australia’s largest pharmacy chain, including the impact of changes to performance rights, subject to audit completion.
The $24 billion merger through a scheme of arrangement will be implemented on 12 February with the new shares issued to Chemist Warehouse shareholders to begin trading on 13 February.
Shareholders in the previously privately-owned Chemist Warehouse will own 86% of the merged entity by receiving shares currently valued at $20.4 billion and an additional $700 million cash.
At 12:30 pm (12:45 am GMT) Sigma Healthcare shares (ASX: SIG) had risen by 12 cents (4.06%) to $2.94, after trading between $2.79 and $3.00, giving it a market capitalisation of $4.81 billion.
