Dis-Chem annual earnings increase

JOHANNESBURG – Pharmacy retailer Dis-chem’s earnings grew by almost 30 per cent for the year ended February 28, 2022, despite the impact of the COVID-19 pandemic and last year’s July unrest.

The group, which released its results yesterday, said its headline earnings per share were 99.2 cents, a 27.6 per cent increase compared to 2021’s earnings.

“Over the last financial year, we have navigated a challenging and complex operating environment, progressed strategic initiatives and completed acquisitions that will drive the group forward in years to come,” Dis-Chem Chief Executive Officer (CEO) Ivan Saltzman said in a statement.

Dis-Chem was impacted by the unrest that took place in KwaZulu-Natal and Gauteng in 2021, that left stores looted and damaged. The pharmacy retailer reopened three of its stores within a month of the unrest and a final store in October.

As for the COVID-19 pandemic, Saltzman said the group has continued to see stabilisation in the operating environment with consumers resuming their pre-pandemic shopping habits, as waves become less severe.

The group, which acquired Baby City in 2020, rebranded the stores as Dis-Chem Baby City and opened three new outlets.

Outlets

It also opened 12 new Dis-Chem stores and acquired 48 Medicare outlets, bringing its retail pharmacies to 254 and its baby stores to 35, as of February. The pharmacy retailer has continued with its national COVID-19 vaccination programme, administering 1.4 million doses during the year, which contributed R513 million to its revenue.

Dis-Chem’s wholesale revenue also saw some growth, increasing by 13.7 per cent to R21.9 billion and sales from its independent pharmacies, as well as The Local Choice (TLC), growing by 16.5 per cent.

The group attributed the growth to TLC’s franchise stores increasing from 122 to 147, and increased support from the brand’s existing franchisees, as well as the independent pharmacies. The pharmacy retailer has declared a final dividend of 20.2 cents per share.