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Dis-Chem Pharmacies (DCP) investor relations material

Dis-Chem Pharmacies H1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H1 2026 earnings summary30 Oct, 2025

Executive summary

  • Achieved strong group performance for the six months ended August 2025, with core retail profitability up 25.8% (excluding ecosystem investments) and significant progress in integrated healthcare strategy.

  • Launched Better Rewards loyalty program, driving a 224% increase in daily average sign-ups and improved customer engagement.

  • Investment in X, bigly labs and Dis-Chem Life is transforming the business into an integrated healthcare provider, with ecosystem investments totaling ZAR 130 million in the period and 60% allocated to X, bigly labs and 40% to Dis-Chem Life.

  • Opened 17 new retail pharmacy stores, bringing the total to 302, and expanded wholesale reach to 1,608 independently owned pharmacies.

Financial highlights

  • Group revenue increased 8.7% year-over-year to R21.3 billion, with retail revenue at R18.1 billion and wholesale revenue up 11.1% to R16.8 billion.

  • Total income rose 9.9% to R6.6 billion, with margin improving to 31.1% from 30.7%.

  • Operating profit increased 9.0% to R1.13 billion; EPS and HEPS up 9.6% and 9.0% to 73.9 and 73.8 cents per share.

  • Interim dividend declared at 29.42 cents per share, up 9.0% year-over-year.

  • Inventory holding reduced by ZAR 374 million, achieving 49% of the ZAR 500 million cash unlock target for FY2026.

Outlook and guidance

  • Group revenue grew 9.7% in the two months post-period; continued investment in ecosystem, loyalty program, and digital platforms expected in the second half.

  • Remaining ZAR 255 million working capital unlock targeted by FY2026.

  • CapEx for the year expected to be slightly less than double the ZAR 200 million already spent, with a new app launch planned for midyear FY2027.

  • Confident in reaching 137,000+ square meters property target by end of FY2027, subject to developer timelines.

  • Store of the future concept to be rolled out from Q1 FY2027, with all new stores and revamps adopting the new design.

Quantify ecosystem investment's impact on core retail
Detail the plan for remaining R255m cash unlock
How does Longmeadow facility impact wholesale?
X, bigly labs' core retail profit contribution?
How does Better Rewards ensure margin growth?
What is the TLC conversion target for wholesale?
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Frequently asked questions

Dis-Chem Pharmacies Limited, co-founded by pharmacists Ivan and Lynette Saltzman in 1978, is a leading retail and pharmaceutical group based in South Africa. With a focus on a pharmacy-first approach, the company strives to provide customers with a comprehensive shopping experience by serving as a one-stop destination for a wide range of products and services. In addition to its core pharmacy operations, Dis-Chem acquired Dis-Chem Baby City in 2021, expanding its offerings to include a variety of mother and baby products. The group also operates CJ Distribution, a wholesale channel with a national presence, as part of its diversified business model. The company is headquartered in Midrand, Gauteng, and its shares are listed on the Johannesburg Stock Exchange.

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