Dis-Chem targets continued expansion despite tough South African operating environment.
Dis-Chem delivered solid results for the year to end February 2023 with the Group’s performance driven by a normalisation of shopping behaviour post-Covid-19.
The company said its earnings per share and headline earnings per share for the 12 months to 28 February 2023 had increased by 17.2% and 17.4% respectively to 116.3c and 116.5c per share, while group revenue rose 7.4% to R32.7 billion. Excluding Covid-19 vaccines and testing, group revenue came in 9% higher. The company’s retail revenue grew by 6.5% (8.4% when excluding Covid-19 vaccines and testing) to R28.9 billion, with comparable store revenue growth of 3.3%. It declared a final dividend of 18.5 cents per share, which brought its total dividend to 46.6c for the year, a 17.3% on the same period in the previous year.
Dis-Chem opened a total of 13 retail pharmacy stores and eight retail baby stores during the period under review, while 12 Baby Boom stores were also acquired. It said that as at February 2023, it had 258 retail pharmacy stores and 54 retail baby stores.
Dis-Chem incoming CEO Rui Morais says that the group is looking to double it’s store footprint as well as acquire a large central distribution centre in South Africa notwithstanding the tough times ahead as consumers come under increasing pressure in a constrained economic environment.