{"id":689457,"date":"2023-05-19T10:16:39","date_gmt":"2023-05-19T08:16:39","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=689457"},"modified":"2023-05-28T10:21:25","modified_gmt":"2023-05-28T08:21:25","slug":"load-shedding-delivers-a-r90-million-blow-to-one-south-africas-biggest-retailers","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/689457\/load-shedding-delivers-a-r90-million-blow-to-one-south-africas-biggest-retailers\/","title":{"rendered":"Load shedding delivers a R90 million blow to one of South Africa&#8217;s biggest retailers"},"content":{"rendered":"<p>Healthcare retailer and pharmacy group Dis-Chem has published its reviewed annual condensed consolidated results for the twelve months ended 28 February.<\/p>\n<p>The group said it was pleased with its performance as shopping patterns normalised after the Covid-19 pandemic.<\/p>\n<p>During the year, the group said that it continued to increase its dispensary market share as South Africa&#8217;s largest retail pharmacy by dispensary market share.<\/p>\n<p>Earnings per share jumped to 116.3 cents, an increase of 17.2%.<\/p>\n<p>Headline earnings per share were also up 17.4% to 116.5 cents per share.<\/p>\n<p>The group declared a gross final cash dividend of 18.45305 cents per share &#8211; based on 40% of headline earnings.<\/p>\n<p>Other key financials can be found below:<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/05\/dischem-results-.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-689461 aligncenter\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/05\/dischem-results-.jpg\" alt=\"\" width=\"856\" height=\"783\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/05\/dischem-results-.jpg 856w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/05\/dischem-results--300x274.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/05\/dischem-results--768x703.jpg 768w\" sizes=\"auto, (max-width: 856px) 100vw, 856px\" \/><\/a><\/p>\n<p>Overall expenses (excluding depreciation) grew by 16.1% during the period.<\/p>\n<p>The group said that its early investment in generator capacity resulted in minimal disputing to its ability to trade, however, heightened load shedding saw the group&#8217;s <strong>diesel expenses go up by 65% to R91 million.<\/strong><\/p>\n<p>Dis-Chem is the latest major retailer to report a massive increase in its energy costs.<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"NKeb1MmjIg\"><p><a href=\"https:\/\/businesstech.co.za\/news\/finance\/684917\/pick-n-pays-load-shedding-bill-shoots-past-r500-million\/\">Pick n Pay&#8217;s load shedding bill shoots past R500 million<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Pick n Pay&#8217;s load shedding bill shoots past R500 million&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/finance\/684917\/pick-n-pays-load-shedding-bill-shoots-past-r500-million\/embed\/#?secret=ujBQmzkHxz#?secret=NKeb1MmjIg\" data-secret=\"NKeb1MmjIg\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p><strong>Outlook\u00a0<\/strong><\/p>\n<p>The group said that it expects South Africans will continue to face major economic headwinds.<\/p>\n<p>Moreover, despite the group&#8217;s measures to address load shedding, it said that operational costs will continue to impact earnings.<\/p>\n<p>However, it said that its integration into the healthcare value chain will reinforce its current and future earnings profile.<\/p>\n<p><a href=\"https:\/\/businesstech.co.za\/news\/business\/687969\/dis-chem-co-founder-to-step-down-as-ceo-after-45-years-at-the-helm\/\" target=\"_blank\" rel=\"noopener\">As previously announced<\/a>, co-founder Ivan Saltzman will step down from his role as CEO at the end of June 2023, with current CFO Rui Morais succeeding him.<\/p>\n<p>Saltzman will still remain as the executive director on the Board and continue to work as a part of the active executive management.<\/p>\n<p>&#8220;The recently announced succession implementation ensures a smooth leadership transition and ensures executive management\u2019s commitment to deliver on the group\u2019s strategic ambitions over the long-term.&#8221;<\/p>\n<p>Moreover, the group will acquire a 63,000 sqm distribution centre which will further accelerate the group&#8217;s retail space growth, enabling it to double its current store count by adding a warehouse capacity.<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/business\/635475\/dis-chem-responds-to-outrage-and-boycott-over-no-whites-letter\/\" target=\"_blank\" rel=\"noopener\">Dis-Chem responds to outrage and boycott over \u2018no whites\u2019 letter<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dis-Chem&#8217;s diesel bills increases by 65% <\/p>\n","protected":false},"author":95,"featured_media":210353,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26],"class_list":["post-689457","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/689457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=689457"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/689457\/revisions"}],"predecessor-version":[{"id":691937,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/689457\/revisions\/691937"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/210353"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=689457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=689457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=689457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}