Dis-Chem Pharmacies (DCP) H1 2027 earnings summary

Executive summary

• H1 revenue rose 8.0% to R22,974m and total income increased 9.0% to R7,204m; operating profit fell 10.5% to R1,006m.

• Better Rewards and retail market-share gains supported trading, while constrained consumer spending, price deflation and higher costs weighed on earnings.

• Basic EPS declined 13.3% to 64.1 cents and HEPS fell 12.8% to 64.3 cents.

Financial highlights

• Profit before tax fell 13.0% to R783.3m; net profit declined 12.0% to R580.6m.

• Net finance costs increased 11.2% to R275m; excluding IFRS 16 finance costs, they rose 13.3%.

• Total income margin improved to 31.4% from 31.1%.

• Interim dividend declared was 25.62181 cents per share, down 12.9% YoY and equal to 40% of headline earnings.

Outlook and guidance

• Revenue grew 7.9% in the seven weeks to 19 October 2026; retail revenue rose 7.2% and external wholesale revenue increased 12.4%.

• FY2027 earnings are expected to be more evenly distributed between H1 and H2, with a stronger full-year earnings performance versus the prior year.

• Plans include 30 new retail pharmacy stores in FY2027; all new stores will use the Store of the Future format.

• Natural inflation is expected to support retail revenue as Better Rewards anniversary base effects unwind; management is focused on cost discipline and rebuilding return on equity.