Skip to main content

Dis-Chem shares dive almost 10% after results

Dis-Chem Pharmacies reported 13.3% growth in group turnover to R19.6bn, boosted by the opening of 21 new stores, the retailer said on Friday as it released its results for the year to end-February 2018.

The new stores bring the total number of Dis-Chem outlets across the country to 129.

Earnings per share rose by 6.1% to 79.6 cents compared to the previous year, while headline earnings accelerated by 6.6% to the same amount.

Dis-Chem's share price took a beating, dropping 9.95% to R31.78 by 15:15 o the JSE.

CEO Ivan Saltzman said this performance is in line with expectations set out during the company's listing process in November 2016.

"Although consumer spend remains constrained, we continue to see growth opportunities across all channels of the market in which we operate,” said Saltzman.

The retailer said it expects the resilient markets in which it operates to “offer protection against the weak environment”.

Dis-Chem is a specialist retailer in beauty, health food, sport supplements, health and well-being products. It faces stiff competition from Clicks and a range of supermarkets which have added pharmacies into their operations.

The group’s total income increased by 13.3% to R5.46bn from the prior comparable period.

It revealed that it sold 50% of its interest in Oncology Proprietary Limited for R75m, and 10% of its interest in Dis-Chem Maponya Mall in Soweto for R1m.

The company said it plans on adding more retail stores and scale, as it looks to increase its market share.

Net finance costs fell by 28.9% to R160m from the prior comparative period. The decrease is primarily due to the settlement of R153m of term debt in the financial year.

Dis-Chem will pay a gross final cash dividend of 12.736c/share for the year ended February 28 2018, based on 40% of adjusted headline earnings.

Pin It

Related Articles

South African retail giant Spar has posted a substantial loss for the first half of its 2025 financial year, despite actively pursuing a major turnaround strategy.
In the period 1 March 2024 to 28 February 2025, Dis-Chem recorded Group revenue growth of 8.0% to R39.2 billion over the prior year.
Dis-Chem has issued a trading update on Monday, 26 May 2025, offering investors a preview of its anticipated financial performance for the year ended 28 February 2025.
Pick n Pay’s turnaround is taking shape as the retailer reports a year of recovery after solving its debt challenges and driving a like for like sales recovery in its core Pick n Pay supermarkets.
By: Edward West – IOL Business Report Pick n Pay Stores’ share price soared nearly 5% on Tuesday (20/05/2025) , after it predicted that its headline loss per share (HLPS) would improve by between 55% and 75% for the 52-week trading to February 25…