<\/p>\n
Pharmacy and healthcare group Dis-Chem missed some analysts\u2019 projections of growth in earnings for the 12-months ended 28 February 2026, after earnings per share (EPS) and headline earnings per share (Heps) fell by double digits.<\/p>\n
This, together with a major decline in its dividend payout, saw its share price slide on Friday, closing almost 8% down to just below R35 a share.<\/p>\n
Releasing its annual results on Sens, the group reported a 17% plunge in Heps, down to 113.7 cents from 137.5 cents in the previous year. The company declared a final dividend of 15.92 cents, which plunged almost 43% from the prior period. Its total dividend per share for the year was over 17% lower.<\/p>\n
This is despite generating strong revenue performance in an environment where consumers continue to be financially constrained, as well as improving total income margin and gaining market share across all core retail categories.<\/p>\n
Read: Founding director exits Dis-Chem, signalling end of an era<\/p>\n
Group revenue increased by 9.3% to R42.8 billion, while retail revenue grew by 9% to R36.6 billion with comparable pharmacy store revenue growth at 5.3%.<\/p>\n
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Dis-Chem says net store changes included the opening and acquisition of 31 retail pharmacy stores and three baby store closures, resulting in a footprint of 316 retail pharmacy stores and 42 retail baby stores at year end.<\/p>\n
Rewards<\/p>\n
For the 17-week period since the launch of its Better Rewards programme, the group says revenue increased by 9.6% compared to the corresponding period.<\/p>\n
Retail revenue growth of participating Better Rewards brands increased by 12% compared to the corresponding period.<\/p>\n
\u201cThe consistency of an always-on, health-relevant, lowest priced basket is driving increased shopping frequency,\u201d Dis-Chem said.<\/p>\n
Read: Fuel loyalty race intensifies as motorists chase every cent<\/p>\n
Expenses were up 13% during the period under review, with store expansion and innovation resulting in a 15.7% jump in retail expenses. Retail employment costs, when excluding the investment in X, bigly labs (Dis-Chem\u2019s Centre of Excellence or \u2018innovation engine\u2019), increased by double digits.<\/p>\n
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Outlook<\/p>\n
\u201cThe revenue growth, market share gains and improved total income margin, highlights the sustainability of the Better Rewards program [sic] and the importance of this program in driving positive operating leverage and strong future earnings growth,\u201d the group said.<\/p>\n
Read: \u2018Lipstick effect\u2019 powers SA\u2019s beauty arms race<\/p>\n
But it again warned that it \u201cexpects that the consumer will remain constrained due to the current economic climate and increase in fuel prices\u201d.<\/p>\n
Read: Sarb\u2019s early hike may curb need for sharper tightening<\/p>\n
#DisChem #slides #Moneyweb<\/p>\n","protected":false},"excerpt":{"rendered":"
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