Pharmacy retailer Dis-Chem says it expects its earnings for the six months ended 31 August, to increase between 32.6% and 37.6%.

Penelope Mashego | Fin24

In a trading update on Monday, Dis-Chem said its earnings per share, are likely to grow to between 47.7 cents and 49.5 cents, up from 36 cents in the first half of 2021. The group anticipates the same increase for its headline earnings per share. 

The pharmacy retailer also shared an update regarding its acquisition of 25% of health company Kaelo, for R195 million, saying the transaction has been approved by the Competition Tribunal.

Kaelo provides gap and primary health insurance products, owns psychological wellbeing platform, AskNelson and occupational health clinics. Dis-Chem said the acquisition will enable it to tap into the market of 12.4 million people in South Africa, who are employed but not medically insured.

"This transaction, together with previous investments and acquisitions, positions Dis-Chem to augment the provision of care in a rapidly evolving primary care landscape. Dis-Chem and Kaelo are both committed to playing leading roles in the ubiquitous access to affordable and quality private primary healthcare," said Dis-Chem.