Dis-Chem Pharmacies (DCP) AGM 2026 summary

Opening remarks and agenda

• Emphasis on investing in the healthcare ecosystem and delivering strong retail results, with a focus on integrated healthcare and core retail performance.

Financial performance review

• Revenue grew by 9.3% and total income by 8.7%, or 9.5% excluding a prior period property gain.

• Operating profit declined by 11.9% due to ecosystem investments and non-recurring expenses; excluding these, operating margin improved to 5.4%.

• EPS and HEPS decreased by 17.1% and 17.3%, but increased by 18% and 17.7% when excluding investments and non-recurring items.

• Retail revenue rose 9% to ZAR 36.6 billion, with like-for-like revenue up 5.3%.

• Wholesale revenue increased by 13.1% to ZAR 34.04 billion, with external wholesale revenue up 11.3%.

• Net finance costs increased by 3.3%, mainly due to higher overdraft usage.

• Inventory days improved, and net working capital days reduced by one day year-on-year.

Board and executive committee updates

• Operating model restructured to create clear accountability, shifting from founder-led to a modern structure.

• Section 189A process underway, affecting 545 employees, with plans to create 200 new roles in marketing and IT.