Sigma and CWG Merger Risks and Management Overview
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CWG is a Leading Australian Retail Pharmacy Franchisor
Founded by the Gance and Verrocchi families in Melbourne, with heritage dating back 50+ years
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Provides a comprehensive range of support services and consumer goods to a multi-national Retail
Network¹ of ~600 stores, mainly operating under the highly recognised Chemist Warehouse brand
Highly compelling and attractive value proposition for franchisees and their customers
Strong track record of historical expansion with numerous near term growth opportunities
CWG
$3.1bn
FY23 statutory revenue
$460m
FY23 statutory EBIT
Retail Network1
-600
stores across
4 countries 2,3
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CHEMIST
WAREHOUSE
DISCOUNT
CHEMIST
$7.9bn
FY23
Total Network Sales4
my CHEMIST
10%
last 5 years'
Total Network Sales CAGR4
15%
FY23 statutory
EBIT margin
7
distribution and fulfilment
centres (leased)
12%
93
FY23 LFL sales
growth in Australia
network stores opened in
the last 3 years6
Notes:
1.
2.
3.
19
4.
The "Retail Network" includes a combination of franchised stores in Australia and wholly and part owned stores across New Zealand, China and Ireland. All Chemist Warehouse and My Chemist pharmacies are franchised in Australia
Refer to page 20 for an overview of the business activities undertaken by CWG
As at 30 June 2023 (refer to page 18 for composition of Retail Network)
Total Network Sales includes a combination of the Retail Network's in-store and CWG's online sales. Australian Network Sales and New Zealand Network Sales are not consolidated into CWG revenue
5.
LFL sales comparison of Australian Retail Network stores only (for stores open for at least 12 months)
6.
Represents growth in the Retail Network between 30 June 2020 and 30 June 2023
7.
Australian Retail Network in-store and online sales only in FY23 based on CWG management information
>133m
consumer transactions
in FY237View entire presentation