Dis-Chem says February retail growth continued

Dis-Chem Pharmacies increased group revenue by 7.2% in the five months to January 31, 2025, and the recovery in retail that was seen in January continued into February.

"The retail revenue recovery seen in January, largely driven by the availability of medical aid benefits, continues into February, countering weaker November trade," chief executive Rui Morais said in a trading update on Friday.

Group revenue increased by 7.2% during the period, with retail revenue rising by 5.6% and wholesale revenue increasing by 11.1%. External wholesale revenue saw a significant increase of 18.8%.

Morais noted that efforts to better manage retail employment costs, the group's largest expense, are ongoing. The group now operates 333 retail stores, including 286 Dis-Chem Pharmacy stores and 47 Dis-Chem Baby City stores in South Africa.

“These incremental improvements continue to contribute to positive operating leverage and the delivery of earnings growth seen in the first half of the year,” Morais stated.

He added that the acceleration of new store openings leading into the festive trade demonstrates the group's commitment to expanding its retail footprint, in line with its strategy.

“This acceleration will continue into the 2026 financial year, with a growing number of secured sites being added to the pipeline,” he said.

While retail revenue grew by 5.6%, like-for-like retail revenue increased by 2.9%.

Dis-Chem has grown its dispensary market share and retained its position as South Africa's largest retail pharmacy group by dispensary market share.

Wholesale revenue growth of 11.1% included a 9.6% increase in sales to its own retail stores.

Revenue from external customers rose by 18.8%, with external wholesale revenue from independent pharmacies increasing by 18.2%.

The Local Choice (TLC) franchise continued to perform well, achieving revenue growth of 19.5%. The group now has 230 TLC franchise stores, up from 200 at the end of the corresponding period. The results for the year to February 28 are scheduled to be released on May 30.