Dis-Chem has upped its dividend amidst higher profits, with the group hoping to add 30,000 sqm of new retail space in the medium term and start operating as a life insurer early next year. <\/p>\n\n\n\n
In its interim financial results for the six months ended 31 August 2024, the group said that it made pleasing progress in each of its eight strategic areas of focus, which aim to deliver sustainable shareholder returns. <\/p>\n\n\n\n
The biggest contributor to earnings growth was the containment of the group’s payroll cost, which helped deliver positive operating leverage, with operating profit growing at 17.5% ahead of Group revenue growth of 9.6%<\/p>\n\n\n\n
“Like-for-like retail employee costs increased by 0.7% following the successful implementation of staffing framework 1.0, where the emphasis was on achieving a consistent and optimal mix of staff to ensure that stores run efficiently,” said the group. <\/p>\n\n\n\n
Basic earnings per share (EPS) and basic headline earnings per share (HEPS) also increased to 67.4 cents (+15.6%) and 67.7 cents per share (+16.3%), respectively. <\/p>\n\n\n\n
The eight strategic focus areas of the group are the following: <\/p>\n\n\n\n
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As per the Integrated Health Ecosyste<\/span>m focus area, Dischem’s new life insurance product follows the acquisition of OneSpark in June this year, where the retailer bought a 50% stake in the insurer for R155.9 million.<\/p>\n\n\n\n Life insurance can be a heavy source of profits for companies, as most clients never claim.<\/p>\n\n\n\n Capitec has also recently joined the trend after launching Capitec Life, complete with its own underwriting capabilities, earlier this year.<\/p>\n\n\n\n