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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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 \u2014 known as X, bigly labs \u2014 which designed its new rewards program. That\u2019s even as revenue rose 8%.<\/p>\n\n\n\n
Dis-Chem shares fell as much as 12% in early trade in Johannesburg on Friday.<\/p>\n\n\n\n
The continued penetration of GLP-1 medicines was one contributor to the revenue increase, alongside the company\u2019s Better Rewards incentive that gives customers discounts on other purchases in its stores.<\/p>\n\n\n\n
With GLP-1 medicines costing about R3,000 per prescription, their rapid uptake is disproportionately lifting the value of Dis-Chem\u2019s pharmacy sales.<\/p>\n\n\n\n
\u201cYou\u2019re selling a lot more very expensive products,\u201d Morais said.<\/p>\n\n\n\n
The company doesn\u2019t disclose GLP-1 revenue, but Morais said sales have compounded at \u201chundreds of percent\u201d over roughly the past 12 to 18 months and continue to show significant month-on-month growth.<\/p>\n\n\n\n
Cheaper generic medicines are poised to enter South Africa, potentially widening access even as lower prices temper their contribution to dispensary revenue growth.<\/p>\n\n\n\n
Dis-Chem is meanwhile investing in data-led promotions designed to encourage customers to shop more frequently and buy more. <\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Customers can \u201cstack\u201d discounts through actions such as using Dis-Chem\u2019s pharmacy services or paying with a Capitec bank card. <\/p>\n\n\n\n
Among existing active customers, shopping frequency increased by two visits, while average basket value rose by 3.5%.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Morais said investment costs are now largely embedded in the business, setting the company up for stronger earnings growth in the second half.<\/p>\n","protected":false},"excerpt":{"rendered":"
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