Dis-Chem posts higher half-year profit


Dis-Chem Pharmacies reported a surge in half-year earnings on Wednesday, benefiting from acquisitions of new baby stores and demand for medicines after the easing of Covid-19 lockdowns.

The group’s headline earnings per share, a key metric of profit for South African companies, rose 44.3% to 70.3 cents in the six months ended August 31 from 48.7 cents in the year–ago period.

Dis-Chem also declared an interim dividend of 28.1 cents per share, up 44.3%.

Dis-Chem, which runs the second-largest chain of pharmacies in South Africa in competition with Clicks Group, said group revenue grew 9.3% to R16.3 billion, comprising of retail revenue growth of 9.3% and wholesale revenue growth of 10.6%.

The company said retail revenue showed normalising trading patterns compared with the year-ago period, when it made R222 million in Covid-19 vaccine administration and testing revenue. It made R143 million in the latest six-months period.

During the reporting period, a net 15 Baby Boom stores were acquired effective March 1, extending the group’s baby retail leadership position, resulting in 251 retail pharmacy stores and 53 retail baby stores as of the end of August.