Sigma Warehouse reported its 1Q26 sales at its AGM. Chemist Warehouse like-for-like sales were up 14.7% for the quarter, an acceleration on FY25 trends. The company highlighted elevated sales of weight-loss drugs like Ozempic as a big contributor. We estimate the contribution is anywhere from 3%-5% of the LFL growth. We expect LFL sales to settle back at 11% in 2Q26e and 9.0% in 2H26e.

Sigma reported FY25 network sales growth for Chemist Warehouse of 14% and EBIT at $903 million, up 47%. The company reported a continuation of double-digit like-for-like sales growth with a lift in profit margins for the underlying Chemist Warehouse business. We forecast EBIT growth of 22% in FY26e ahead of revenue growth of 15%. Margins will be helped by penetration of Wagner private label, operating leverage from strong comp sales and the increasing synergies over the next four years.