Dis-Chem Pharmacies has reported strong financial results for the first half of 2024, showcasing a 16.3% increase in headline earnings per share (HEPS). The group’s focus on expansion and efficient cost management has significantly boosted its bottom line. Dis-Chem recorded a 9.6% rise in total revenue for the six months ending in August, reaching R19.6 billion.
The retail segment saw revenue grow by 7.1% to R16.7 billion, driven mainly by comparable pharmacy store sales, which rose by 4.8%. Dis-Chem added seven new retail pharmacy locations, expanding its network to 274 retail pharmacies and 53 baby stores.
In its wholesale division, Dis-Chem achieved a 10% increase in revenue, totalling R15 billion. This growth came from strong demand among independent pharmacies and The Local Choice (TLC) franchise network.
Sales to external customers surged by 26.6% as more independent pharmacies partnered with Dis-Chem’s streamlined supply chain solutions. The TLC network expanded to 221 stores, up from 205 in February, as more independent pharmacies joined the franchise.
Strategic focus on sustainable value drives profitability
CEO Rui Morais attributed Dis-Chem’s financial performance to a focused growth strategy for sustainable shareholder returns. Key to this was a new staffing model that optimised payroll costs, contributing to positive operating leverage.
Dis-Chem plans to add 137,000 square meters to its retail footprint over three years. Thirteen new pharmacy stores are expected to open by year-end, with four already operational. This expansion aligns with Dis-Chem’s strategy to deepen its reach and meet the growing demand for accessible healthcare solutions across South Africa.