Dis-Chem Pharmacies (DCP) H2 2026 earnings summary

Executive summary

• Launched Better Rewards, driving strong revenue growth, market share gains, and maintaining total income margin.

• Significant investment in ecosystem and digital transformation, including Store of the Future, Health Hub, and X, Bigly Labs.

• Core retail profitability increased, with positive operating leverage and improved cost control.

• Operating model restructured for clearer accountability and innovation alignment, supporting future growth.

• Opened new retail stores and launched Health Hub, focusing on integrated healthcare delivery.

Financial highlights

• Group revenue grew 9.3% year-over-year to R42.8bn; total income up 9.6% (excluding prior period property gain).

• Retail revenue rose 9% to ZAR 36.6bn; like-for-like retail revenue up 5.3%.

• Wholesale revenue increased 13.1% to ZAR 34.04bn; external wholesale revenue up 11.3%.

• Operating profit declined 11.9% due to ecosystem investment and non-recurring expenses; adjusted operating profit up 14.8%.

• EPS and HEPS down 17.1% and 17.3%, but up 18% and 17.7% excluding non-recurring items.

• Net finance costs rose 3.3% (7.1% excluding IFRS 16), mainly from increased overdraft usage; contained due to reduced loan balances.

Outlook and guidance

• Post year-end, group revenue up 19%, retail revenue up 8.8%, and wholesale revenue to external customers up 10.4%.

• Total income margin increased to 32.0% post year-end, reflecting Better Rewards traction.

• 34 new retail pharmacy stores planned for FY27, all adopting Store of the Future/Health Hub format.

• Continued focus on digital expansion, cost control, and employee engagement.

• Consumer environment expected to remain constrained; high competition anticipated.