Dis-Chem Pharmacies (DCP) H1 2025 earnings summary

Executive summary

• Group revenue increased by 11.1% to ZAR 36.3 billion for the full year, and by 9.6% to R19.6 billion for the six months ended 31 August 2024, with operating profit up 17.5% and EPS increasing 15.6% to 67.4 cents.

• Retail revenue rose 7.1% to R16.7 billion, with comparable pharmacy store revenue up 4.8%; six new retail pharmacy stores opened, totaling 274 stores.

• Wholesale revenue increased 13.3% to ZAR 27.4 billion for the year and 10.1% to R15.1 billion for the half-year, with external wholesale revenue up 26.6%.

• Interim dividend declared at 26.98 cents per share, up 16.1%, and full-year dividends increased by 21% in the second half.

• Strategic focus on cost control, retail space expansion, and integrated healthcare underpinned performance.

Financial highlights

• Retail revenue grew by 9.7% to ZAR 31.7 billion for the year, with like-for-like sales up 6.9%.

• Wholesale revenue up 10.1% year-over-year for the half-year, with TLC franchise and independent customer revenues up 21.8% and 30.3%, respectively.

• Operating profit, excluding property gain, increased by 6.4% for the year; operating margin improved to 5.3% from 4.9% for the half-year.

• EPS and HEPS, adjusted for property gain, increased by 4% and 3.8% for the year; basic EPS at 67.4 cents and HEPS at 67.7 cents, up 15.6% and 16.3% for the half-year.

• Cash increased by ZAR 194 million, with expansion CapEx to turnover at 1.0%.

Outlook and guidance

• Tough trading conditions expected to persist; focus remains on value, cost containment, and accelerated property rollout.

• Over 22 new sites secured for FY 2025, with a 3-year property pipeline of 107,000m² weighted towards FY2026 and FY2027.

• Continued investment in digital health, analytics, and integrated healthcare, including new life insurance offerings and the launch of Dis-Chem Life in Q1 2025.

• Ongoing transition of independent pharmacies into TLC franchise stores and further wholesale market share expansion.

• Targeting a 10% reduction in stock days over 18 months and further payroll cost efficiency.