Dis-Chem Pharmacies (DCP) H2 2025 earnings summary

Executive summary

• Achieved strong performance for the year ended February 2025, with 8.0% year-over-year revenue growth to R39.2bn, driven by new retail stores, independent wholesale, and like-for-like sales growth.

• Significant progress on strategic pillars including property expansion, cost control, and integrated healthcare ecosystem development.

• Successfully embedded staffing framework 1.0, centralized inventory management, and launched innovation hub X, bigly labs to drive digital and analytics capabilities.

• Expanded healthcare offerings with Dis-Chem Life and enhanced bi-directional integration between retail and financial services, boosting engagement.

Financial highlights

• Revenue grew by 8% year-over-year to R39.2bn; total income increased by 9.2%, outpacing expense growth of 7.5%.

• Operating profit rose 18.3% year-over-year; operating margin improved from 4.9% to 5.4%.

• EPS and HEPS increased by 20% to 137.6 and 137.5 cents per share, respectively; excluding property gain, EPS and HEPS up 12.2% and 12.3%.

• Retail revenue up 5.9% to ZAR 33.6 billion; like-for-like retail revenue up 4.1%; wholesale revenue up 9.9%; external wholesale revenue up 22.1%.

• One-off property gain of ZAR 103.7 million from Midrand Warehouse acquisition.

Outlook and guidance

• Accelerated property rollout with 39 stores planned for FY2026, doubling prior year’s expansion; 3-year pipeline of 130,000m².

• Launch of a digitally led, analytically driven loyalty program and simplified promotional mechanisms in H2 FY2026.

• Committed to unlocking ZAR 500 million in working capital in FY2026 through inventory optimization.

• Focus on omnichannel retailing, digital healthcare, and enhanced customer engagement.