Dis-Chem increases turnover by 13.1%
JSE-LISTED Dis-Chem Pharmacies saw its group turnover increasing by 13.1 percent to R8.5 billion for the 22 weeks to end February 2, boosted by good pharmacy offerings and differentiated stock range as compared to the same period last year.
The 13.1 percent turnover growth was almost similar to the group’s annual turnover growth of 13.3 percent.
The group’s retail turnover achieved more growth as it reported 14.2 percent increase to R7.9bn during the same period.
The group said comparable store growth and sales price inflation for the period were 5.5 percent and 2.5 percent respectively.
Dis-Chem added that comparable store growth was heavily impacted by the extent of new space added in the current reporting period as 30 additional stores were added in the 22-week period.
The group indicated in the past that it was focusing on adding new retail stores to its base in the year ahead to its growing stores portfolio.
And in this period DisChem said it grew its presence in under-represented markets.
Dis-Chem chief executive Ivan Saltzman said: “We are comfortable that the industry fundamentals and the Dis– Chem brand positioning, the focus of which remains on an unrivalled pharmacy offering, dedicated front shop service and a differentiated stock range, continues to allow us to trade well through challenging market conditions.”
The group’s wholesale segment registered a bigger gain, up by 19 percent during the period.
Going forward Saltzman said the group expected that price inflation would be at lower levels in 2018 as a result of the announced single exit price (SEP) increase of 1.26 percent.
“Supported by our store roll-out strategy, we remain focused on ensuring we continue to grow our market shares in the categories that we serve,” Saltzman said.
In the industry, the implementation of SEP meant that the private pharmaceutical sector had to adjust from a free to a regulated market, where prices had to be cut and discounts discarded.
In December, Dis-Chem managed to raise R1.12bn in accelerated book build through the sale of 32 million Dis-Chem ordinary shares at a price of R35 a share.
The company said the R35 a share represented a 9.3 percent discount to the pre-launch closing price of R38.58 a share.
Dis-Chem shares declined 0.69 percent to close at R37.40 on the JSE yesterday.