Dis-Chem has seen a large increase in earnings as the group continues to expand its store and pharmacy network. <\/p>\n\n\n\n
In its results for the year ended 28 February 2025, the group said it has made solid progress on eight strategic areas to deliver sustainable shareholder value.<\/p>\n\n\n\n
Effective cost management was the largest contributor to earnings growth during this period, especially payroll costs.<\/p>\n\n\n\n
It added that the successful deployment of its staffing framework 1.0 contributed to positive operating leverage, with operating profit growth of 18.3%, ahead of group revenue growth of 8.0%.<\/p>\n\n\n\n
Basic earnings per share and headline earnings per share both increased by 20.0% to 137.6 cents and 137.5 cents per share, respectively. <\/p>\n\n\n\n
The group’s total dividend per share was also increased by 19.9% to 45.74 cents per share.<\/p>\n\n\n\n
However, when excluding a once-off gain associated with the acquisition of a Midrand warehouse, headline earnings increased by 12.3%. <\/p>\n\n\n\n
The group’s retail revenue grew by 5.9% to R33.6 billion, with comparable pharmacy store revenue growth at 4.1%.<\/p>\n\n\n\n
Net store changes included the opening of 20 and closure of 3 retail pharmacy stores and a net nine baby stores closures.<\/p>\n\n\n\n
The group’s footprint stood at 285 retail pharmacy stores and 45 retail baby stores at the year-end.<\/p>\n\n\n\n
The group’s wholesale revenue increased by 9.9% to R30.1 billion, with wholesale revenue to its retail stores still being the most significant contributor, and grew 7.4%.<\/p>\n\n\n\n
External revenue to independent pharmacies and The Local Choice (‘TLC’) franchises grew by 22.1% compared to the prior period.<\/p>\n\n\n\n
The independent pharmacy growth of 22.7% was attributable to new customers and increased support from the current base.<\/p>\n\n\n\n
TLC growth was 21.2% due to a combination of an increase in TLC franchise stores from 205 to 240 and increased supply chain support from existing TLC franchisees.<\/p>\n\n\n\n
Total income grew by 9.2% to R12.1 billion, with the group’s total income margin increasing slighlty from 30.7% to 31.0%.<\/p>\n\n\n\n
The group’s retail income grew by 7.9%, with the retail margin increasing from 29.7% to 30.3% over the comparable period.<\/p>\n\n\n\n
“The increase in retail total income margin was predominantly due to an increase in transactional gross margin across dispensary, personal care, beauty and healthcare,” said the group.<\/p>\n\n\n\n The group also expects the consumer to remain constrained due to the current economic climate.<\/p>\n\n\n\n As per its plan to reach its three-year target of 137,000 sqm, it will continue accelerating its space, identification and new store openings.<\/p>\n\n\n\n Including the nine new stores already trading in FY2026, a total of 39 retail pharmacy stores are planned for the year.<\/p>\n\n\n\n The group will also rework its online retailing and healthcare buildings, starting with the complete revamp of digital channels. <\/p>\n","protected":false},"excerpt":{"rendered":" Dis-Chem has seen a large increase in earnings for the 2025 financial year, with the group looking to expand its store network. <\/p>\n","protected":false},"author":95,"featured_media":774612,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[11649],"class_list":["post-826157","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-dis-chem"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/826157","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=826157"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/826157\/revisions"}],"predecessor-version":[{"id":826245,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/826157\/revisions\/826245"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/774612"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=826157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=826157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=826157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Financials<\/strong><\/td> FY24<\/strong><\/td> FY25<\/strong><\/td> % Change<\/strong><\/td><\/tr> Group revenue<\/td> R36.3 billion<\/td> R39.2 billion<\/td> +8.0%<\/td><\/tr> Earnings per share<\/td> 114.7 cents<\/td> 137.6 cents<\/td> +20.0%<\/td><\/tr> Headline earnings per share<\/td> 114.6 cents<\/td> 137.5 cents<\/td> +20.0%<\/td><\/tr> Total dividend per share<\/td> 45.74 cents<\/td> 54.83 cents<\/td> +19.9%<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n Outlook<\/strong> <\/h2>\n\n\n\n