Chemist Warehouse founders share $365m dividend windfall

afr.com:

Rich Listers and Chemist Warehouse founders Jack Gance and Mario Verrocchi have shared a $365 million dividend from Australia’s no.1 pharmacy chain, despite profit at the privately owned business falling more than 20 per cent.

Audited accounts for Chemist Warehouse’s parent company, CW Group, lodged with the financial regulator earlier this week, reveal the pair and their families were paid $264 million in dividends in the 12 months to June 30.

Chemist Warehouse paid $364 million in dividends in the last 12 months. Steven Siewert

Directors were paid a further $101 million in dividends earlier this month.

The $365 million cumulative payout compares to $280 million in dividends distributed in the previous financial year. Despite the bump in dividends, annual 2022-23 net profit was $302 million, down 21 per cent from $385 million in FY22.

Revenue inched higher to $3.1 billion from $3 billion.

A note in the report said the group’s international expansion effort had continued with new Chemist Warehouse stores opening in New Zealand, Ireland and China. According to the report, the group had 545 stores at balance date, 21 more than a year earlier.

Back in June, Sigma Pharmaceuticals won Chemist Warehouse’s wholesale pharmaceuticals contract held by its much-bigger rival EBOS, in a deal valued at $3 billion. Following the deal, Chemist Warehouse took a 10.7 per cent stake in Sigma.

The deal with Sigma in June fuelled further speculation about Chemist Warehouse listing on the ASX.

A Chemist Warehouse IPO has been talked about for years with estimated valuation previously cited above $5 billion.