Sigma Healthcare Ltd (SIG.AU) saw its stock price surge 5.32% in intraday trading on Wednesday, following the release of its fiscal year 2025 financial results and a positive outlook for the future. The company, which recently merged with the Chemist Warehouse Group, reported significant growth and operational improvements.

For the fiscal year ended June 30, 2025, Sigma Healthcare posted impressive financial results. The company's revenue soared to AU$6 billion, nearly doubling from AU$3.29 billion in the previous year. Despite a slight dip in earnings per share to AU$0.051 from AU$0.055, Sigma Healthcare reported a substantial 41.4% increase in Normalized EBIT, reaching AU$903.4 million. The total retail network sales grew by 14% to AU$10.3 billion, with the Chemist Warehouse network achieving an 11% like-for-like sales growth.

Investors were particularly encouraged by Sigma Healthcare's strong start to fiscal year 2026, with the company reporting double-digit like-for-like retail network sales growth year-to-date. The company's strategic focus on scale has led to improved operational efficiency, with logistics costs decreasing by 11% per unit. Additionally, Sigma Healthcare expanded its retail network, opening 35 new Chemist Warehouse stores. The company also announced plans to optimize its operations by closing certain facilities and transitioning its presence in China to online channels, aiming to achieve an upgraded synergy target of AU$100 million per annum. These strategic moves, coupled with the strong financial performance, have boosted investor confidence, driving the stock's significant rise.