The one medication making Dis-Chem’s wallet fat
Dis-Chem said surging demand for GLP-1 medicines is helping drive double-digit growth in its dispensary revenue as South Africans increasingly turn to the expensive drugs used to treat diabetes and obesity.
Dispensary revenue rose 10% in the six months through August, about double the rate of market-value growth of 5.1%, Chief Executive Officer Rui Morais told reporters Thursday after the company released earnings.
Headline earnings per share, which exclude certain capital items, declined almost 13% in the period as the company absorbed upfront investment in its innovation unit — known as X, bigly labs — which designed its new rewards program. That’s even as revenue rose 8%.
Dis-Chem shares fell as much as 12% in early trade in Johannesburg on Friday.
The continued penetration of GLP-1 medicines was one contributor to the revenue increase, alongside the company’s Better Rewards incentive that gives customers discounts on other purchases in its stores.
With GLP-1 medicines costing about R3,000 per prescription, their rapid uptake is disproportionately lifting the value of Dis-Chem’s pharmacy sales.
“You’re selling a lot more very expensive products,” Morais said.
The company doesn’t disclose GLP-1 revenue, but Morais said sales have compounded at “hundreds of percent” over roughly the past 12 to 18 months and continue to show significant month-on-month growth.
Cheaper generic medicines are poised to enter South Africa, potentially widening access even as lower prices temper their contribution to dispensary revenue growth.
Dis-Chem is meanwhile investing in data-led promotions designed to encourage customers to shop more frequently and buy more.
Its rewards program has 8.2 million active members, who account for 86.1% of sales, and has returned R1.5 billion in value to customers since its October 2025 launch.
Customers can “stack” discounts through actions such as using Dis-Chem’s pharmacy services or paying with a Capitec bank card.
Among existing active customers, shopping frequency increased by two visits, while average basket value rose by 3.5%.
The next step is to use the customer data generated by the program to increasingly personalise discounts. Dis-Chem said future promotional investment will be driven by predictive and adaptive offers developed through its X, Bigly Labs innovation unit.
Morais said investment costs are now largely embedded in the business, setting the company up for stronger earnings growth in the second half.
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