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.

Basic earnings per share (EPS) and basic headline earnings per share (HEPS) are 137.6 cents and 137.5 cents per share respectively, an increase of 20.0%. Excluding the once-off property gain in the current period, with the acquisition of the Midrand warehouse in December 2024, EPS and HEPS are 128.8 cents and 128.7 cents per share respectively, an increase of 12.2% and 12.3% respectively.

Chief Executive Rui Morais says: “With continued focus on the eight strategic areas aimed at delivering sustainable shareholder returns, the Group has made pleasing progress in each of these areas. The biggest contributor to earnings growth was the containment of retail payroll cost, predominantly driven by the successful deployment of a staffing framework 1.0 to achieve a consistent and optimal staff mix to ensure that stores run efficiently without compromising our differentiated service model. This delivered positive operating leverage, with operating profit growing at 18.3% ahead of group revenue growth of 8.0%.”

Retail revenue grew by 5.9% to R33.6 billion with comparable pharmacy store revenue growth at 4.2%. During the 12 months to 28 February 2025, 20 retail pharmacy stores were opened, three pharmacy stores and a net nine baby stores closed, resulting in 285 retail pharmacy stores and 45 retail baby stores.

Wholesale revenue grew by 9.9%. Wholesale revenue to external customers, being The Local Choice (‘TLC’) franchises and independent customers, grew by 22.1% over the comparable period, due to a combination of new customers and increased support from the current base, related to superior service levels and a customer-centric approach. Independent pharmacy revenue growth was 22.7%. During the period, TLC franchise stores increased from 205 to 240, contributing to TLC revenue growth of 21.2%

Group total income grew by 9.2% to R12.1 billion, with the Group’s total income margin being 31% compared to 30.7% in the prior comparative period. When excluding the property gain in the current period, Group total income margin was 30.7%. 

Retail total income grew by 7.9% with the retail margin increasing from 29.7% to 30.3% over the comparable period. The increase in retail total income margin was predominantly due to an increase in transactional gross margin across dispensary, personal care, beauty and healthcare. Trade terms increased ahead of purchases growth due to increased scale.

Wholesale total income grew by 14.8% (10.2% excluding the property gain) with wholesale total income margin increasing from 8.1% to 8.2% (excluding the property gain).

The Group has declared a gross final cash dividend of 27,85c per share based on 40% of headline earnings. This is an increase of 23.8% from the prior year.

Designed with a health focus, Dis-Chem Life launched in early February, selling individual life insurance and funeral products. Early indications show that all metrics are market-leading and enhance Dis-Chem ecosystem engagement, delivering tangible value to policyholders.

“There is continued acceleration of space identification and new store openings, and we are pleased to report significant progress in our retail expansion strategy. Following the opening of 20 pharmacy stores in FY25, we are on track to open a further 39 stores in FY26, nine of which are already trading,” says Morais. 

For the three-month period 1 March 2025 to 27 May 2025, Group revenue grew by 8.6% over the prior comparable period. Retail revenue grew by 7.8%, supported by the nine new pharmacy stores, with comparable pharmacy store revenue growth at 4.6%. Wholesale revenue to external customers grew by 13.6%.

“We expect that the consumer will remain constrained due to the current economic climate. Following the establishment of X, bigly labs, the Group’s innovation unit, there’s a shift to data-led commercial decisioning that places the customer at the centre of the ecosystem experience. X, bigly labs has been structured for execution, to power the Group’s ambition of reshaping healthcare and maximising customer lifetime value. It takes inspiration from global best practice, adapted for Dis-Chem’s operating model.”

Linked to the Group’s strategic areas of focus, several business priorities will progress and launch in FY2026. This includes evolving and simplifying promotional mechanisms on the back of a reimagined loyalty offering, the deployment of staffing framework 2.0 into the retail business to ensure sustainable positive operating leverage, and a complete revamp of digital channels that enhances online retailing and healthcare access.

Whatsapp