Full Year 2026 Pharmx Technologies Ltd Earnings Call

August 27, 2026

Speaker #1: Good morning, all, and welcome to the Pharmex FY26 results presentation. I'm Tom Calder, CEO of Pharmex, and we also have Zoë Hillier, CFO. Today we'll provide you with a brief overview of our business, our key results and metrics, as well as provide an overview of our focus areas for FY27.

Tom Culver: Good morning all, and welcome to the Pharmx FY2026 results presentation. I am Tom Culver, CEO of Pharmx. We also have Zoe Hillier, CFO. Today, we will provide you a brief overview of our business, our key results and metrics, as well as provide an overview of our focus areas for FY2027. We will also provide an opportunity for questions at the end of the presentation. Please throughout, submit your questions via the Q&A function that you will find in the call.

Tom Culver: Good morning all, and welcome to the Pharmx FY 2026 Results Presentation. I am Tom Culver, CEO of Pharmx. We also have Zoe Hillier, CFO. Today, we will provide you a brief overview of our business, our key results and metrics, as well as provide an overview of our focus areas for FY 2027. We will also provide an opportunity for questions at the end of the presentation. Please throughout, submit your questions via the Q&A function that you will find in the call.

Speaker #1: We'll also provide an opportunity for questions at the end of the presentation. Please submit your questions via the Q&A function that you will find in the call.

Speaker #1: Positioned at the heart of the industry, Pharmx offers critical industry infrastructure that aims at the pharmacy network. Our strategy to expand our network and diversify revenues continues to deliver strong results.

Tom Culver: Positioned at the heart of the industry, Pharmx offers critical industry infrastructure to the ANZ pharmacy network. Our strategy to expand our network and diversify revenues continues to deliver strong results. In the year, we released the new Marketplace platform, which provides both a one-stop shop pharmacy ordering and a new channel for suppliers, whilst expands the revenue base by capturing our increasing share of.

Speaker #1: In the year, we released the new marketplace platform, which provides both a one-stop shop for pharmacy ordering and a new channel for suppliers, while expanding the revenue base by capturing or increasing our share of profits.

Speaker #1: Additionally, a program of work has started to modernize the PharmX gateway to enable the provision of vertically expanded services throughout the supply chain, expanding our addressable market.

Tom Culver: Additionally, a program of work has started to modernize the Pharmx Gateway to enable the provision of vertically expanded services throughout the supply chain, expanding our addressable market. Finally, we continue to develop and grow our AI-enabled analytics capabilities, further diversifying revenue and driving value back to our network customers. Today, we deliver our critical infrastructure through a secure, high availability, single platform solution made up of three core services.

Speaker #1: And finally, we continue to develop and grow our AI-enabled analytics capabilities, further diversifying revenue and driving value back to our network customers. Today, we deliver our critical infrastructure through a secure, high-availability, single-platform solution made up of three core services: our gateway, which increasingly operates as the truth layer for the sector, with new universal connectivity facilitating $26 billion of network flows across 120,000 active SKUs and over 300 million invoice lines per annum.

Tom Culver: Our Gateway, which increasingly operates as the truth layer for the sector, with near universal connectivity, facilitating AUD 26 billion of network flows across 120,000 active SKUs and over 300 million invoice lines per annum. This makes us one of the largest EDI providers in the world.

Speaker #1: This makes us one of the largest EDI providers in the world. Marketplace improves ordering and supply chain outcomes for pharmacies and suppliers through a modern, accessible e-commerce layer, operating on top of the gateway. This diversifies revenues to volume-based revenues for our business.

Tom Culver: Marketplace improves ordering supply chain outcomes for pharmacies and suppliers through a modern, accessible e-commerce layer operating on top of the Gateway, diversifying revenues to volume space revenues for our business.Pharmx also now offers a market-leading data and analytics capability to commercialize the rich data created from our dominant position within the industry. FY2026 was another pivotal year for the company.

Speaker #1: Pharmex also now offers a market-leading data and analytics capability to commercialize the rich data created from our dominant position within the industry. FY26 was another pivotal year for the company, while a number of key strategic building blocks were put in place to facilitate future growth.

Tom Culver: Whilst a number of key strategic building blocks were put in place to facilitate future growth, we continue to see growth in our core business as well as across all key areas of our strategy. As a result, recurring revenue grew by 9%. Through the Gateway, excluding the impact of a change in distribution model for two suppliers, Gateway grew 8% year on year. Net of this impact, Gateway recurring revenue grew 3%.

Speaker #1: We continue to see growth in our core business, as well as across all key areas of our strategy. As a result, recurring revenue grew by 9% through the gateway. Excluding the impact of a change in distribution model for two suppliers, gateway grew 8% year on year.

Speaker #1: Net of this impact, gateway recurring revenue grew 3%. Notably, our vertical expansion strategy will increasingly shield the business from similar ad-hoc customer decisions impacting our business in the short term.

Tom Culver: Notably, our vertical expansion strategy will increasingly shield the business from similar ad hoc customer decisions impacting our business in the short term. Recurring revenues throughout the Marketplace grew an impressive 73% year on year.New Zealand revenue, equally impressive, increased 67% year on year, whilst our analytics revenue grew 25% year on year. Our gross margin has improved year on year, demonstrating the increase in non-rebate related revenue streams.

Speaker #1: Recurring revenue throughout the marketplace grew an impressive 73% year on year. New Zealand revenue was equally impressive, increasing 60% to 67% year on year, whilst our analytics revenue grew 25% year on year.

Speaker #1: Our gross margin has improved year on year, demonstrating the increase in non-rebate-related revenue streams. We've maintained a positive EBITDA despite the significant transformation and strategic activities that have occurred during the year, and we have $2.6 million cash in the bank at 30 June, and continue to generate positive operating cash flows.

Tom Culver: We have maintained a positive EBITDA despite the significant transformation and strategic activities that have occurred during the year. We have AUD 2.6 million of cash in the bank at 30 June and continue to generate positive operating cash flows. I will now hand you over to Zoe, who will talk through profit and loss and our cash flow.

Speaker #1: I'll now hand over to Zoë, who will talk through profit and loss, as well as our cash flow.

Speaker #2: Thanks, Tom. Good morning, everyone. So, as Tom mentioned, I'll now go through just a bit more detail on the financial results for the year.

Zoe Hillier: Thanks, Tom. Good morning, everyone. As Tom mentioned, I'll now go through just a bit more detail on the financial results for the year. Revenue for the year was AUD 7.7 million, which was a positive result in line with our expectations, underpinned by strong platform growth in line with our strategy. Recurring revenue has grown by 9% year-on-year, excluding a distribution change that occurred during the year for two of our suppliers. For example, changing from a direct-to-store model to a wholesaler distribution model.

Speaker #2: Revenue for the year was $7.7 million, which was a positive result in line with our expectations. This was underpinned by strong platform growth, consistent with our strategy.

Speaker #2: Recurring revenue has grown by 9% year on year, excluding a distribution change that occurred during the year for two of our suppliers. For example, changing from a direct-to-store model to a wholesaler distribution model.

Speaker #2: Net of this, recurring revenue increased 5% year-on-year. Marketplace commission revenue has increased 73% versus the prior comparable period. In November 2025, our new marketplace was launched, and we have seen continuing month-on-month growth in gross transaction value.

Zoe Hillier: Net of this, recurring revenue increased 5% year-on-year. Marketplace commission revenue has increased 73% versus prior comparable period. In November 2025, our new Marketplace was launched, and we have seen continuing month-on-month growth in growth transaction value, and pleasingly, an acceleration of pharmacy adoption and usage metrics.In H1, there was an intentional pause in onboarding and marketing activities on the old PharmXchange platform until the new Marketplace was launched.

Speaker #2: And pleasingly, an acceleration of pharmacy adoption and usage metrics. In H1, there was an intentional pause in onboarding and marketing activities on the old PharmXchange platform, until the new marketplace was launched.

Speaker #2: Year on year, there has been a reduction in paid marketing revenue and one-off integration fee revenue received. We expect this to increase again as the marketplace continues to gain more traction and we can charge for these services again.

Zoe Hillier: Year-on-year, there has been a reduction in paid marketing revenue and one-off integration fee revenue received. We expect this to increase again as the Marketplace continues to gain more traction, and we can charge for these services again. This has all resulted in a net increase in total revenue by 3% compared to the prior period. Total operating costs were AUD 6.7 million, which is AUD 0.7 million more than the prior period. This increase in operating costs was in line with our plan and to support the launch of the new Marketplace.

Speaker #2: This has all resulted in a net increase in total revenue by 3% compared to the prior period. Total operating costs were $6.7 million, which is $0.7 million more than the prior period.

Speaker #2: This increase in operating costs was in line with our plan and supported the launch of the new marketplace. The increase was driven by our investment in development resources, sales and marketing capability, and IT infrastructure.

Zoe Hillier: The increase was driven by our investment in development resources, sales and marketing capability, and IT infrastructure. People costs have increased by AUD 183,000, technology costs by AUD 137,000, and marketing costs by AUD 103,000.

Speaker #2: People costs have increased by $183,000, technology costs by $137,000, and marketing costs by $103,000. Professional fees were also up by $394,000, mainly due to some additional one-off legal and advisory costs in relation to the Sigma and Chemist Warehouse strategic partnership that was established during the year.

Zoe Hillier: Professional fees were also up by AUD 394,000, mainly due to some additional one-off legal and advisory costs in relation to the Sigma and Chemist Warehouse strategic partnership that was established during the year. EBITDA for the half year was positive at AUD 1.1 million, compared to AUD 1.6 million in the prior period. This reduction was entirely driven by the increased growth expenditure I mentioned.

Speaker #2: EBITDA for the half-year was positive at $1.1 million, compared to $1.6 million in the prior period. This reduction was entirely driven by the increased gross expenditure I mentioned.

Speaker #2: Amortization and depreciation for the period was $1.6 million, an increase of 22% on the prior comparable period, due to the ongoing investment in product development and the capitalization of those costs.

Zoe Hillier: Amortization and depreciation for the period was AUD 1.6 million, an increase of 22% on the prior comparable period, due to the ongoing investment in product development and the capitalization of those costs. Employee performance rights expense also increased in the current year as a long-term incentive scheme was rolled out to the broader organization to incentivize and retain talent. In addition, there was a AUD 644,000 non-cash share-based payment expense recognized in the current period in relation to the Sigma strategic alliance.

Speaker #2: Employee performance rights expense also increased in the current year, as a long-term incentive scheme was rolled out to the broader organization to incentivize and retain talent.

Speaker #2: In addition, there was a $644,000 non-cash share-based payment expense recognized in the current period in relation to the Sigma strategic alliance. The remainder of this investment, $9.7 million, will be recognized over the duration of the five-year contract as a non-cash item.

Zoe Hillier: The remainder of this investment of AUD 9.7 million will be recognized over the duration of the five-year contract as a non-cash item. I'll now go on to cash flows. A positive operating cash flow was delivered even with the upfront work on the Sigma strategic alliance, as well as the launch of Marketplace and the increased investment in people, sales, marketing, and IT, and technology.

Speaker #2: I'll now go on to cash flows. Positive operating cash flow was delivered, even with the upfront work on the Sigma strategic alliance, as well as the launch of Marketplace and the increased investment into people, sales, marketing, IT, and technology.

Speaker #2: The prior period operating cash flow included the payment to Fred IT of $9.9 million, which was made in accordance with the final orders issued by the Victorian Supreme Court.

Zoe Hillier: The prior period operating cash flow included the payment to Fred IT of AUD 9.9 million, which was made in accordance with the final orders issued by the Victorian Supreme Court. The net R&D incentive received in the current period was AUD 368,000, which is down on the AUD 862,000 received in the prior period.This was due to the one-off true-up payment of income tax in relation to the previously reported early termination of the Alchemy Healthcare revenue share agreement, which was in relation to the PharmXchange intellectual property.

Speaker #2: The net R&D incentive received in the current period was $368,000, which is down from the $862,000 received in the prior period. This was due to the one-off true-up payment of income tax in relation to the previously reported early termination of the Alchemy revenue share agreement, which was in relation to the Pharmex Change intellectual property.

Speaker #2: We will shortly be lodging our FY26 tax return, which will include an R&D tax refund claim of $1.2 million, which we expect to be received in H1 of FY27.

Zoe Hillier: We will shortly be lodging our FY2026 tax return, which will include an R&D tax refund claim of AUD 1.2 million, which we expect to be received in H1 of FY2027. The launch of the Marketplace has led to increased development costs, with AUD 2.1 million of capital expenditure on product development during the current period.

Speaker #2: The launch of the marketplace has led to increased development costs, with $2.1 million of capital expenditure on product development during the current period. The prior comparable period’s capitalized development was $1.7 million.

Zoe Hillier: Prior comparable period capitalized development was AUD 1.7 million. The prior period there was also investing cash flows, partly offsetting this related to the sale of the pharmacy software business. We have ended the year with a positive closing cash balance of AUD 2.6 million. I will now hand back over to Tushar.

Speaker #2: In the prior period, there were also investing cash flows, partly offsetting this, related to the sale of the pharmacy software business. We ended the year with a positive closing cash balance of $2.6 million.

Speaker #2: I'll now hand back over to Tom.

Speaker #1: Thank you, Zoë. The strong financial results are supported by excellent platform metrics, displaying strong growth over the year. Total platform GTVs increased by 11% year-on-year, which is a 30% increase from FY23.

Tom Culver: Thank you, Zoe. The strong financial results are supported by excellent platform metrics displaying strong growth over the year. Total platform GCV has increased by 11% year-on-year. That is a 30% increase from FY2023. Orders have increased across the platform, demonstrating increasingly strong competitive position and strong uptake in our new platforms. ARPU has increased across our three core revenue-generating pillars, which demonstrates growing value of the solutions that we are providing. As we look at our Marketplace, which remains our principal long-term growth engine, we see strong growth across four metrics, resulting in July 2026 reaching AUD 4.7 million in GCV, which demonstrates both strong signs of change in ordering behavior as well as an increased confidence in us achieving our near-term goal of AUD 100 million GCV run rate within 12 months.

Speaker #1: Orders have increased across the platform, demonstrating an increasingly strong competitive position and strong uptake in our new platforms. ARPU has increased across our three core revenue-generating pillars, which demonstrates the growing value of the solutions that we're providing.

Speaker #1: As we look at our marketplace, which remains our principal long-term growth engine, we see strong growth across four metrics. As a result, July 2026 reached $4.7 million in GTV, which demonstrates both strong signs of change in ordering behavior as well as increased confidence in us achieving our near-term goal of a $100 million GTV run rate within 12 months.

Tom Culver: As we look at our Marketplace, which remains our principal long-term growth engine, we see strong growth across four metrics, resulting in July 2026 reaching AUD 4.7 million in GCV, which demonstrates both strong signs of change in ordering behavior as well as an increased confidence in us achieving our near-term goal of AUD 100 million GCV run rate within 12 months.

Speaker #1: As we look at FY27, our key focuses are on margin expansion and improving the commission mix on the platform; increasing the number of manufacturers and distributors on the marketplace as a strategy to increase this blended take rate; continuing pharmacy growth; expanding the number of pharmacies and also the monthly spend of our target cohorts; and additional revenue streams coming online in the platform, including marketing and advertising.

Tom Culver: As we look to FY2027, our key focuses are on margin expansion, improved commission mix on the platform, increasing the number of manufacturers and distributors on the Marketplace as a strategy to increase this blended take rate, continuing pharmacy growth, expanding the number of pharmacies and also the monthly spend of our target cohorts, and additional revenue streams coming online in platform, including marketing and advertising. These are areas that Zoe previously mentioned were put on hold previously, which we now anticipate will start to generate revenues in FY2027. We clearly achieved a great deal in FY2026, strengthening our business and continuing to grow. Key highlights of the year include the launch of the Pharmx Marketplace platform, diversifying revenues.

Speaker #1: These are areas that Zoë previously mentioned were put on hold, which we now anticipate will start to generate revenues in FY27. We clearly achieved a great deal in FY26, strengthening our business and continuing to grow.

Tom Culver: These are areas that Zoe previously mentioned were put on hold previously, which we now anticipate will start to generate revenues in FY2027. We clearly achieved a great deal in FY2026, strengthening our business and continuing to grow. Key highlights of the year include the launch of the Pharmx Marketplace platform, diversifying revenues.Operating metrics are increasingly compelling for both pharmacies and suppliers, supported by an impressive order fulfillment rate of 94% on the platform.

Speaker #1: Key highlights of the year include the launch of the Pharmex Marketplace platform, diversifying revenues. Operating metrics are increasingly compelling for both pharmacies and suppliers, supported by an impressive order fulfillment rate of 94% on the platform, which is a 34% improvement compared to the traditional EBI ordering process.

Tom Culver: Operating metrics are increasingly compelling for both pharmacies and suppliers, supported by an impressive order fulfillment rate of 94% on the platform. This is a 34% improvement against the traditional EDI ordering process. We have cart abandonment rates of just 1%, which is extremely strong and a demonstration of the value and the quality of the platform. Supplier partners on the platform are recording measurable market share and product line growth, whilst pharmacists continue to grow their average spend month-on-month. We completed the strategic alliance with Sigma. The alliance secures access to Australia's largest pharmacy retail footprint, renews Sigma's EDI and wholesale agreement for a further five years, and brought Sigma onto our register as a substantial shareholder with board representation. We modernized our core platform services.

Tom Culver: This is a 34% improvement against the traditional EDI ordering process. We have cart abandonment rates of just 1%, which is extremely strong and a demonstration of the value and the quality of the platform. Supplier partners on the platform are recording measurable market share and product line growth, whilst pharmacists continue to grow their average spend month-on-month. We completed the strategic alliance with Sigma.

Speaker #1: And we have part abandonment rates of just 1%, which is extremely strong and a demonstration of the value and the quality of the platform.

Speaker #1: Supplier partners on the platform are recording measurable market share and product line growth, while pharmacists continue to grow their average spend month-on-month.

Speaker #1: We completed the strategic alliance with Sigma. The alliance secures access to Australia's largest pharmacy retail footprint, renews Sigma's EDI and wholesale agreement for a further five years, and brought Sigma onto our register as a substantial shareholder with board representation.

Tom Culver: The alliance secures access to Australia's largest pharmacy retail footprint, renews Sigma's EDI and wholesale agreement for a further five years, and brought Sigma onto our register as a substantial shareholder with board representation. We modernized our core platform services.

Speaker #1: We've modernized our core platform services, the development of Gateway 5, and our vertically integrated van-to-van EDI solution to drive vertical expansion, expand our addressable market, add value to our existing network, and increase the efficiency of our cloud services with an expected cost reduction of 18% in FY27.

Tom Culver: The development of Gateway 5 and our vertically integrated VAN-to-VAN EDI solution drive vertical expansion, expanding our addressable market, adds value to our existing network, and increase the efficiency of our cloud services with an expected cost reduction of 18% in FY27. Our network has continued to widen. During the year, we signed 25 new suppliers, added over 3,600 new Gateway accounts, and migrated eight suppliers to variable pricing, shifting revenue towards transaction value rather than account-based fees. We also expanded the care accounts across hospital ordering vendors and health stores, again, expanding our addressable market. We also resecured our agreement with the NDSS, supporting services for a further two years. We have continued our investment into AI, driving productivity in our business, as well as leveraging solutions within our products.

Speaker #1: Our network has continued to widen. During the year, we signed 25 new suppliers, added over 3,600 new gateway accounts, and migrated eight suppliers to variable pricing, shifting revenue towards transaction value rather than account-based fees.

Speaker #1: We also expanded the key accounts across hospital ordering vendors and health stores again, expanding our addressable market. We also re-secured our agreement with the NBSS, supporting services for a further two years.

Tom Culver: We also expanded the care accounts across hospital ordering vendors and health stores, again, expanding our addressable market. We also resecured our agreement with the NDSS, supporting services for a further two years. We have continued our investment into AI, driving productivity in our business, as well as leveraging solutions within our products.

Speaker #1: We have continued our investment into AI, driving productivity in our business, as well as leveraging solutions within our products. Further, we've recently strengthened the executive leadership team, with Vaughn Ryan joining as our Chief Commercial—sorry, Chief Revenue Officer—in June 2026, bringing global commerce experience across e-commerce, data, and analytics.

Tom Culver: Further, we have recently strengthened the executive leadership team with Vaughn Ryan joining as our Chief Revenue Officer in June 2026, bringing global commerce experience across e-commerce data and analytics. Koki Kang has also recently joined as our Chief Product Officer. KT brings deep expertise in e-commerce, digital transformation, and B2B platforms. Both appointments give us senior capability in precisely the areas where FY27 growth will come from. As we think about our market, demand, spend, and channel shift continue to move in the favor of the Pharmx operating model. What we see is structural versus cyclical shifts, meaning the sector remains highly attractive for the years to come. Driven by aging population, rise in chronic disease, and with the retail pharmacy market expected to continue to grow, efficiency and technology investment remain crucial in the industry.

Speaker #1: Kofi Khan has also recently joined as our Chief Product Officer. PK brings deep expertise in e-commerce, digital transformation, and B2B platforms, and both appointments give us senior capability in precisely the areas where FY27 growth will come from.

Speaker #1: As we think about our market, demand, spend, and channel shift continue to move in favor of the Pharmex operating model. What we see are structural versus cyclical shifts, meaning the sector remains highly attractive for the years to come.

Tom Culver: As we think about our market, demand, spend, and channel shift continue to move in the favor of the Pharmx operating model. What we see is structural versus cyclical shifts, meaning the sector remains highly attractive for the years to come. Driven by aging population, rise in chronic disease, and with the retail pharmacy market expected to continue to grow, efficiency and technology investment remain crucial in the industry.

Speaker #1: Driven by an aging population and rising chronic disease, and with the retail pharmacy market expected to continue to grow, efficiency and technology investment remain crucial in the industry, with a rising need for digital ordering, optimized front-of-shop, and data-led innovation across the entire supplier chain.

Tom Culver: With rising need for digital ordering, optimized front of shop, and data-led innovation across the entire supplier chain. To close, FY26 established very strong foundations for growth and demonstrated strong early traction and success across our key focus areas. Year-on-year performance remains solid, with uplifts in revenue and impressive increases in activity across all key metrics. We have also enhanced AI and executive leadership team capabilities to increase productivity and drive executional excellence. Off this stable base, we now look ahead to FY27, a year of execution, and our priorities are clear. We continue to scale the Marketplace volumes and supplier growth with continued optimization and sharper focus on supplier outcomes. We expand margins through supplier migration and improved commission mix. We have modernized the platform to Gateway 5 and our vertical integration solution rollout. We have scaled onboarding and AI integration to support both platform take-up and insight delivery.

Speaker #1: To close, FY26 established very strong foundations for growth and demonstrated strong early traction and success across our key focus areas. Year-on-year performance remains solid, with uplifts in revenue and impressive increases in activity across four key metrics.

Speaker #1: We've also enhanced our AI and executive leadership team capabilities to increase productivity and drive executional excellence. With this stable base, we now look ahead to FY27—a year of execution—and our priorities are clear.

Tom Culver: Off this stable base, we now look ahead to FY27, a year of execution, and our priorities are clear. We continue to scale the Marketplace volumes and supplier growth with continued optimization and sharper focus on supplier outcomes. We expand margins through supplier migration and improved commission mix. We have modernized the platform to Gateway 5 and our vertical integration solution rollout. We have scaled onboarding and AI integration to support both platform take-up and insight delivery.

Speaker #1: We continue to scale the marketplace volumes and supply growth, with continued optimization and sharper focus on supplier outcomes. We expand margins through supplier migration and improved commission mix, we've modernized the platform to Gateway 5 and our versatile integration solution rollout, we've scaled onboarding and AI integration to support both platform take-up and insight delivery.

Speaker #1: We've maximized the opportunities available under our strategic alliance with Sigma and Chemist Warehouse across the combined network. We've further embedded AI-driven data solutions, leading with demand planning, forecasting, and master data services, and continue to focus on New Zealand, with supplier growth expanding and market exposure through Park & Chemist, our partnership with Tonic, and a vertical integration partnership with Sigma.

Tom Culver: We maximize the opportunities available under our strategic alliance with Sigma and Chemist Warehouse across the combined network. We further embed AI-driven data solutions, leading with demand planning, forecasting, and master data services. We continue to focus on New Zealand, with supplier growth expanding market exposure through Park and Chemist, our partnership with Toniq, vertical integration partnership with Sigma. We thank you for your time today, and we look forward to a very strong FY27 and beyond.

Speaker #1: We thank you for your time today, and we look forward to a very strong FY27 and beyond.

Speaker #2: So, there is a question in the Q&A.

Zoe Hillier: There is a few in Q&A.

Speaker #1: Yeah, just. So just bear with a second. Just our Q&A is just loading. So this revenue relates to sorry, this question relates to our delivery of revenue against the delivery of our initiatives and the lag of which we see behind the investment in our product and the return on revenue.

Tom Culver: Just bear with us a second. Our Q&A is just loading. This revenue relates to, sorry, this question relates to our delivery of revenue against the delivery of our initiatives, and the lag of which we see behind the investment in our product and the return on revenue. For those who follow our business closely and will have been taking part in previous presentations, we have talked about 2026 very much being a year of investment for our business. Laying the core four foundations for growth, particularly across Marketplace capabilities and data and analytics, as well as our step forward with our Sigma alliance, which leads to our vertical integration strategies. All of which, as we have communicated previously, are designed to drive revenue forward from 2027 and beyond.

Speaker #1: For those who follow our business closely and have taken part in previous presentations, we've talked about FY26 very much being a year of investment for our business, laying the core foundations for growth, particularly across marketplace capabilities and data and analytics, as well as our step forward with our Sigma alliance, which leads to our vertical integration strategies.

Tom Culver: Laying the core four foundations for growth, particularly across Marketplace capabilities and data and analytics, as well as our step forward with our Sigma alliance, which leads to our vertical integration strategies. All of which, as we have communicated previously, are designed to drive revenue forward from 2027 and beyond.

Speaker #1: All of which, as we've communicated previously, are designed to drive revenue forward from FY27 and beyond. So, from our perspective, our revenue result for FY26 is absolutely in line with expectations and absolutely in line with what we have communicated to the market.

Tom Culver: From our perspective, our revenue result for 2026 is absolutely in line with expectations, and absolutely in line with what we have communicated to market. As we have just presented, we believe we are in a very strong position now to drive uplifting revenues for 2027 and beyond, as well as margin expansion in the business. James, you have your hand up. Do you want to ask the question?

Speaker #1: And as we've just presented, we believe we're in a very strong position now to drive increased revenues for FY27 and beyond, as well as margin expansion in the business.

Speaker #1: James, do you have your hand up? Do you want to ask a question?

Speaker #3: Hi, Tom. Hi, Zoe. Thanks for taking my question. It's James Tracy from Blue Ocean. The question is really around—you presented that good chart there.

James Tracy: Hi, Tom. Hi, Zoe. Thanks for taking my question. It is James Tracy from Blue Ocean. The question is really around, you presented that good chart there on the Marketplace growth, the bar chart, and there was a big tick up in the GTV in July, which was a bit higher than I was expecting. I have got the ruler out based on your March release when you actually put numbers against those figures, and it looks as though you are multiplying that monthly figure by 12. It looks like you might be at around AUD 50 million annualized GTV, which is roughly half of where you were hoping to be in May of 2027. So it looks like potentially you are tracking ahead of that target that you put out there for AUD 100 million of GTV in a year. I just wanted to clarify that with you.

James Tracey: Hi, Tom. Hi, Zoe. Thanks for taking my question. It is James Tracey from Blue Ocean. The question is really around, you presented that good chart there on the Marketplace growth, the bar chart, and there was a big tick up in the GTV in July, which was a bit higher than I was expecting. I have got the ruler out based on your March release when you actually put numbers against those figures, and it looks as though you are multiplying that monthly figure by 12.

Speaker #3: On the marketplace growth, the bar chart showed a big tick up in the GTV in July, which was a bit higher than I was expecting.

Speaker #3: And I've got the ruler out based on your March release when you actually put numbers against those figures, and it looks as though multiplying that monthly figure by 12, it looks like you might be at around sort of $50 million annualized GTV, which is roughly half of where you were hoping to be in May of '27.

James Tracey: It looks like you might be at around AUD 50 million annualized GTV, which is roughly half of where you were hoping to be in May of 2027. So it looks like potentially you are tracking ahead of that target that you put out there for AUD 100 million of GTV in a year. I just wanted to clarify that with you.And also maybe if you could talk about what's driving that big jump up in July. It looks like there's a big increase in the spend per pharmacy. Maybe you could talk to that. Thank you.

Speaker #3: So, it looks like potentially you're tracking ahead of that target that you put out there for $100 million of GTV in a year. I just wanted to clarify that with you.

Speaker #3: And also, maybe if you could talk about what's driving that big jump up in July. It looks like there's a big increase in the spend per pharmacy—maybe you could talk to that.

James Tracy: And also maybe if you could talk about what's driving that big jump up in July. It looks like there's a big increase in the spend per pharmacy. Maybe you could talk to that. Thank you.

Speaker #3: Thank you.

Speaker #1: Yeah, thanks, James. Absolutely. So, obviously, as we mentioned, marketplace is our primary growth driver for the business. It's a key focus for us. We have seen an uptick in performance, particularly through June and July, and we're seeing that continued performance come through in August as well.

Tom Culver: Yeah. Thanks, James. Absolutely. As we mentioned, Marketplace is our primary growth driver for business. It's a key focus for us. Where we have seen the uptick in performance, particularly through June, July, and we're seeing that continued performance come through in August as well, has come from a number of factors. The platform has now been in market for a little under 6 months. It takes time to build presence in a market. It takes time to build trust with customers. That has now been developing, and what we have seen is a strong increase in monthly spend of both our target customers as well as our broader users on the platform.

Speaker #1: This has come from a number of factors. The platform has now been in the market for a little under six months. It takes time to build presence in a market.

Speaker #1: It takes time to build trust with customers. That has now been developing, and what we have seen is a strong increase in monthly spend by both our target customers as well as our broader users on the platform.

Tom Culver: That has now been developing, and what we have seen is a strong increase in monthly spend of both our target customers as well as our broader users on the platform.This is a very positive demonstration of the quality of the products that we've delivered, the communication of the product that we're able to deliver, our engagement through our customer success teams, and trust in the platform going forward. Internally, we've also become stronger as a team.

Speaker #1: And so, this is a very positive demonstration of the quality of the products that we have delivered, the communication of the product that we're able to deliver, our engagement through our customer success teams, and trust in the platform going forward.

Tom Culver: This is a very positive demonstration of the quality of the products that we've delivered, the communication of the product that we're able to deliver, our engagement through our customer success teams, and trust in the platform going forward. Internally, we've also become stronger as a team. We are clearer on how to firstly convert customers more quickly from registration into activation. We are better now at engaging with our customers to drive a quicker uptick in spend on the platform, again, across both our target cohort and our broader customer base, which is driving these results. Lastly, we continue to optimize the platform.

Speaker #1: Internally, we've also become stronger as a team. We are clearer on how to, firstly, convert customers more quickly from registration into activation. We are better now at engaging with our customers to drive a quicker uptick in spend on the platform—again, across both our target cohort and our broader customer base—which is driving these results.

Tom Culver: We are clearer on how to firstly convert customers more quickly from registration into activation. We are better now at engaging with our customers to drive a quicker uptick in spend on the platform, again, across both our target cohort and our broader customer base, which is driving these results. Lastly, we continue to optimize the platform.

Speaker #1: And then lastly, we continue to optimize the platform. We have a number of features that we roll out on a monthly basis to improve every area of the platform, all of which is intended to drive towards our North Star metric on the platform, which is growing order origination and reaching 90% of orders for our core cohort.

Tom Culver: We have a number of features that we roll out on a monthly basis to improve every area of the platform, all of which is intended to drive towards that North Star metric on the platform, which is growing order origination and reaching 90% of orders for our core cohort. We're very much on that trajectory. To your question around where we're heading, we have certainly accelerated in the last couple of months. That acceleration we expect to continue, particularly as we then think about the supplier side of the Marketplace. One of our key strategic objectives for this year, as I mentioned, is to firstly grow the number of suppliers on the Marketplace, the number of suppliers, distributors, and importantly, manufacturers. Having more stock and product available on the platform drives more spend.

Speaker #1: And so, we're very, very much on that trajectory. To your question around where we're heading, we have certainly accelerated in the last couple of months.

Speaker #1: That acceleration, we expect to continue, particularly as we then think about the supplier side of the marketplace. So, one of our key strategic objectives for this year, as I mentioned, is firstly to grow the number of suppliers on the marketplace—the number of suppliers, distributors, and, importantly, manufacturers. Having more stock and product available on the platform drives more spend.

Tom Culver: One of our key strategic objectives for this year, as I mentioned, is to firstly grow the number of suppliers on the Marketplace, the number of suppliers, distributors, and importantly, manufacturers. Having more stock and product available on the platform drives more spend.It will also improve our commission mix or our earnings on the platform. Secondly, is driving better outcomes for the suppliers that we have on platform.

Speaker #1: It will also improve our commission mix, or our earnings on the platform. Secondly, it is driving better outcomes for the suppliers that we have on the platform—having a sharper focus on driving uplift and increasing market share and product purchasing through partnership, through marketing, through bespoke sales opportunities and promotion opportunities that we're now developing with our partners. Again, all of which drives further traction on the platform.

Tom Culver: It will also improve our commission mix or our earnings on the platform. Secondly, is driving better outcomes for the suppliers that we have on platform. Having a sharper focus on driving uplift, and increasing market share and product purchasing through partnership, through marketing, through bespoke sales opportunities and promotion opportunities that we are now developing with our partners. Again, all of which drives further traction on the platform. In summary, we are very happy with where we are. There is still work to do, and we hope to continue to accelerate.

Tom Culver: Having a sharper focus on driving uplift, and increasing market share and product purchasing through partnership, through marketing, through bespoke sales opportunities and promotion opportunities that we are now developing with our partners. Again, all of which drives further traction on the platform. In summary, we are very happy with where we are. There is still work to do, and we hope to continue to accelerate.

Speaker #1: So, in summary, we're very happy with where we are. There is still work to do, and we hope to continue to accelerate.

Speaker #3: And just on that topic, I mean, I've done some back-of-the-envelope calculations around the number of pharmacies that are on the platform, and it seems like it's in the range of 100 to 120 pharmacies out of a pool of 6,000 potential pharmacies.

James Tracy: Just on that topic, I have done some back of the envelope calculations around the number of pharmacies that are on the platform, and it seems like it is in the range of 100 to 120 pharmacies out of a pool of 6,000 potential pharmacies. I guess for the people that you have on there, they are very successful. Could you talk about getting more pharmacies on there and where that could get to?

James Tracey: Just on that topic, I have done some back of the envelope calculations around the number of pharmacies that are on the platform, and it seems like it is in the range of 100 to 120 pharmacies out of a pool of 6,000 potential pharmacies. I guess for the people that you have on there, they are very successful. Could you talk about getting more pharmacies on there and where that could get to?

Speaker #3: So I guess for the people that you have on there, they're very successful. Could you talk about getting more pharmacies on there, and where that could get to?

Speaker #1: Yeah, so there is definitely a relationship between pharmacies and suppliers, or the range that we have available to those pharmacies, which is an important metric for us.

Tom Culver: Yeah. There is definitely a relationship between pharmacies and suppliers or the range that we have available to those pharmacies, which is an important metric for us. We have a target whereby we want our stores to be able to come on and do all of their ordering on our platform. We are designed to be a one-stop shop. That is our ambition. In order for us to do that, we are required to have more suppliers and wholesalers on the platform, hence it being a key area of growth for us this year. James, your number is not wildly inaccurate. The number is higher than that in terms of the number of transacting pharmacies, but this is absolutely our strategy. We are focusing on small cohorts who spend a very large proportion of their monthly spend on our platform.

Speaker #1: We have a target whereby we want our stores to be able to come on and do all of their ordering on our platform. We're designed to be a one-stop shop.

Speaker #1: That is our ambition. In order for us to do that, we are required to have more suppliers and wholesalers on the platform, hence it being a key area of growth for us this year.

Speaker #1: And so, James, your number is not wildly inaccurate. The number is higher than that in terms of the number of transacting pharmacies, but this is absolutely our strategy.

Tom Culver: James, your number is not wildly inaccurate. The number is higher than that in terms of the number of transacting pharmacies, but this is absolutely our strategy. We are focusing on small cohorts who spend a very large proportion of their monthly spend on our platform.

Speaker #1: We are focusing on small cohorts. They spend a very large proportion of their monthly spend on our platform. As we grow the number of suppliers, that cohort increases.

Tom Culver: As we grow the number of suppliers, that cohort increases. What we have got after that over the past couple of months is lifting the spend for our non-cohort customers, and that is coming through the work we are doing with our suppliers and partnerships, particularly around promotions. We are expanding the strategy a little bit, but our core focus remains on those core cohorts, driving a small number of pharmacies with a very high spend.

Speaker #1: What we have gotten better at over the last couple of months is lifting the spend for our non-cohort customers. That is coming through the work we're doing with our suppliers and partnerships, particularly around promotions.

Speaker #1: So, we are expanding the strategy a little bit, but our core focus remains on those core cohorts, driving a small number of pharmacies with a very high spend.

Speaker #3: Excellent. Thank you, Tom.

Speaker #1: Thanks, James. We've got one more question on the chat as well. So this is relating to the Stigma Alliance, which has now been in place for six months.

James Tracy: Great. Thank you, Tom.

James Tracey: Great. Thank you, Tom.

Tom Culver: Thanks, James. We got one more question on the chat as well. Relating to the Sigma alliance, which has now been in place for six months, and a question around the benefits that we're starting to see flow through. While we cannot talk too specifically about the work that is going on under the alliance, I've mentioned before in our presentations that we will announce things as individual scopes work or contracts are agreed. At this stage, the main priority between our two businesses is the release of our vertically integrated EDI solution to support the launch of the Sigma New Zealand distribution center, which will be happening. Orders will start flowing into the distribution center in mid-September, with then orders flying out to stores also in mid-September.

Speaker #1: And a question around the benefits that we're starting to see flow through. So, whilst we cannot talk too specifically about the work that is going on under the alliance, I've mentioned before in our presentations that we will announce things as individual scopes of work or contracts are agreed.

Speaker #1: At this stage, the main priority between our two businesses is the release of our vertically integrated EDI solution to support the launch of the Sigma New Zealand distribution center, which will be happening soon. Orders will start flowing into the distribution center in mid-September, with orders then flowing out to stores also in mid-September.

Tom Culver: At this stage, the main priority between our two businesses is the release of our vertically integrated EDI solution to support the launch of the Sigma New Zealand distribution center, which will be happening. Orders will start flowing into the distribution center in mid-September, with then orders flying out to stores also in mid-September.That's the primary focus between our two businesses, is a core part of the strategic initiative and the strategic relationship.

Speaker #1: So that's the primary focus between our two businesses, being the core part of the strategic initiative and the strategic relationship. As we've mentioned in previous releases, the core benefit for our business here is vertically integrating our solution. It gives us access to a new addressable market of a similar size to our current market.

Tom Culver: That's the primary focus between our two businesses, is a core part of the strategic initiative and the strategic relationship. As we've mentioned in previous releases, the core benefit for our business here is vertically integrating our solution gives us access to a new addressable market of a similar size to our current market. It drives new revenue streams and new revenue opportunities and builds new relationships with new suppliers and expands our relationships with our existing suppliers, driving more value into the industry. It also works as an opportunity for us to expand those services with our other customers in this region and potentially support partners in other regions with those services. As I mentioned in the presentation, we drive a very strong business. Our core EDI services are exceptionally good, large, and highly capable, and it is a natural progression for us to expand this.

Tom Culver: As we've mentioned in previous releases, the core benefit for our business here is vertically integrating our solution gives us access to a new addressable market of a similar size to our current market. It drives new revenue streams and new revenue opportunities and builds new relationships with new suppliers and expands our relationships with our existing suppliers, driving more value into the industry.

Speaker #1: It drives new revenue streams and new revenue opportunities, and builds new relationships with new suppliers, while expanding our relationships with our existing suppliers. This drives more value into the industry.

Speaker #1: It also works as an opportunity for us to expand those services with our other customers in this region, and potentially support partners in other regions with those services.

Tom Culver: It also works as an opportunity for us to expand those services with our other customers in this region and potentially support partners in other regions with those services. As I mentioned in the presentation, we drive a very strong business. Our core EDI services are exceptionally good, large, and highly capable, and it is a natural progression for us to expand this.In terms of the other opportunities that we have with Sigma, we have now about 14 work items on the go across the business in various phases.

Speaker #1: As I mentioned in the presentation, we drive a very, very strong business. Our core EDI services are exceptionally good, large, and highly capable, and it is a natural progression for us to expand this.

Speaker #1: In terms of the other opportunities that we have with Sigma, we now have about 14 work items on the go across the business in various phases.

Tom Culver: In terms of the other opportunities that we have with Sigma, we have now about 14 work items on the go across the business in various phases. We expect to be able to announce other things in the coming months that will relate to the other core pillars of our strategy, the Marketplace and data and analytics. Well, thank you everyone. There seems to be no more questions coming through, and we are almost at time, so we will close off today. We do appreciate you taking the time and coming to listen to our updates. As mentioned, we will continue to provide news flow and updates throughout the year as our business continues to perform strongly and as we continue to grow. As I mentioned, we are very comfortable with the position that we are in. We believe we've got some very solid foundations.

Speaker #1: We expect to be able to announce other things in the coming months that will relate to the other core pillars of our strategy, being marketplace and data and analytics.

Tom Culver: We expect to be able to announce other things in the coming months that will relate to the other core pillars of our strategy, the Marketplace and data and analytics. Well, thank you everyone. There seems to be no more questions coming through, and we are almost at time, so we will close off today. We do appreciate you taking the time and coming to listen to our updates.

Speaker #1: We thank you, everyone. There seem to be no more questions coming through, and we are almost at time, so we will close off today.

Speaker #1: We do appreciate you taking the time to come and listen to our updates. As mentioned, we will continue to provide news flow and updates throughout the year.

Tom Culver: As mentioned, we will continue to provide news flow and updates throughout the year as our business continues to perform strongly and as we continue to grow. As I mentioned, we are very comfortable with the position that we are in. We believe we've got some very solid foundations.We are showing a very strong sign of growth across our key strategic initiatives, and we expect to see revenue and margin expansion in FY27.

Speaker #1: As our business continues to perform strongly and as we continue to grow, as I mentioned, we are very comfortable with the position that we are in.

Speaker #1: We believe we've built some very, very solid foundations. We're showing a very, very strong sign of growth across our key strategic initiatives. And we expect to see revenue and margin expansion in FY27.

Tom Culver: We are showing a very strong sign of growth across our key strategic initiatives, and we expect to see revenue and margin expansion in FY27.

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