Clicks vs Dis-Chem – the winner is clear
Clicks remains a stronger investment than its largest rival, Dis-Chem, according to renowned investment experts.
Clicks and Dis-Chem remain comfortably the largest pharmacy chains in South Africa, with both companies pushing ahead with massive increases in their store footprints.
Speaking with BusinessDayTV, Schalk Louw from PSG Wealth said both companies have performed well recently.
Although he doesn’t own Clicks, Louw said that he would buy if there is a moment of weakness for the stock.
Despite both Clicks and Dis-Chem being strong businesses, Louw said that Clicks is winning the expansion battle.
Clicks plans to open around 50 new stores, while Dis-Chem is looking at around 40 in the coming year.
“Therein lies the difference between the two companies for me. You can clearly see that Clicks are quicker to roll out these new stores,” said Louw.
“I think it’s helped them up to now. It will most probably be the one that I’ll buy in any weakness.”
Investment legend David Shapiro from Sasfin Securities shared a similar sentiment to Louw.
Shapiro noted that Dis-Chem is still a very young business, with a new generation taking the helm.
Although Clicks was only formed 10 years before Dis-Chem in 1968, its retail network is well over 900 outlets. This is far more than Dis-Chem’s 327 locations.
The first leadership change at Dis-Chem only occurred in 2023, with former CFO Rui Morais taking over from founder Ivan Saltzman.
Shapiro said it will take time for the company to get where it wants to be, even if he believes that the group should have expanded more rapidly until now.
He noted that there is nothing wrong with Dis-Chem’s underlying business, but from a pure market point of view, Clicks still has a large edge on Dis-Chem.
Recent performance
Both companies have seen relatively strong results over the last year, with solid returns generated for shareholders.
In its interim results for the six months ending 28 February 2025, Clicks said its business model remained resilient, with market shares in its core health and beauty categories.
The group’s total turnover jumped by 6.2% to R23.2 billion. Its retail turnover, which includes Clicks, the Body Shop, M-Kem and Sorbet corporate stores, increased by 6.4%.
The group’s headline earnings rose by 12.9% from R1.27 billion to R1.44 billion, and its headline earnings per share jumped by 13.2% to 603.9 cents per share.
The performance in the first half of the financial year resulted in a 13.2% increase in the group’s diluted headline earnings per share (HEPS).
Its board also increased the interim gross ordinary dividend from 210 cents per share in the prior period to 238 cents per share.
Dischem also saw a strong performance in its financial results for the year ended 28 February 2025.
The group said it made solid progress on strategic areas to deliver sustainable shareholder value.
The group’s retail revenue grew by 5.9% to R33.6 billion, with comparable pharmacy store revenue growth at 4.1%.
Basic and headline earnings per share increased by 20.0% to 137.6 cents and 137.5 cents per share, respectively.
The group’s total dividend per share also jumped by 19.9% to 45.74 cents per share.
Recent Results
| Financials | H1 2024 | H1 2025 | % Change |
| Revenue (R billion) | R23.3 | R24.8 | +6.6% |
| Headline Earnings (R billion) | R1.27 | R1.44 | +12.9% |
| Basic earnings per share (cents) | 532.9 | 603 | +13.1% |
| Diluted earnings per share (cents) | 532.9 | 603 | +13.1% |
| Interim dividend (cents) | 210 | 238 | +13% |
| Financials | FY24 | FY25 | % Change |
| Group revenue | R36.3 billion | R39.2 billion | +8.0% |
| Earnings per share | 114.7 cents | 137.6 cents | +20.0% |
| Headline earnings per share | 114.6 cents | 137.5 cents | +20.0% |
| Total dividend per share | 45.74 cents | 54.83 cents | +19.9% |
Revenue
Earnings per Share
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