Dis-Chem Pharmacies (DCP) H2 2024 earnings summary

Executive summary

• FY24 revenue rose 11.1% to R36.3bn; strong H2 performance lifted earnings before tax 22.0% YoY.

• Record H2 operating profit reflected progress on cost controls, particularly staff cost management.

Financial highlights

• Basic EPS was 114.7 cents, down 1.4%; HEPS was 114.6 cents, down 1.6% YoY.

• Excluding the prior-year R72m property gain, EPS rose 4.0% and HEPS rose 3.8%.

• Total income increased 9.3% to R11.1bn; expenses grew 10.9%.

• FY pretax earnings increased 3.0% to R1.385bn; H2 rose 22.0% to R683m, while H1 declined 10.6% to R702m.

Outlook and guidance

• Revenue grew 11.4% for 1 March–25 May 2024 YoY; the consumer is expected to remain constrained by economic conditions.

• Plans target ~137,000m² of additional retail space over 36 months, with delivery weighted to years two and three.

• Medium-term priorities include 10% better inventory days, sustained positive operating leverage, incremental total-income margin improvements, and growth in digital health.

• Transaction agreements were signed to invest in a life insurance business, supporting the integrated health ecosystem strategy.