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Acquisitions pay off as Dis-Chem posts higher half-year profit

South African pharmacy chain Dis-Chem Pharmacies reported a surge in half-year earnings on Wednesday, benefiting from acquisitions of new baby stores and demand for medicines after the easing of Covid-19 lockdowns.
Source: Dis-Chem
Source: Dis-Chem

The group's headline earnings per share, a key metric of profit for South African companies, rose 44.3% to 70.3 cents in the six months ended 31 August from 48.7 cents in the year-ago period.

Dis-Chem also declared an interim dividend of 28.1 cents per share, up 44.3%.

Dis-Chem, which runs the second-largest chain of pharmacies in South Africa in competition with Clicks Group, said group revenue grew 9.3% to R16.3bn ($899.6m), comprising of retail revenue growth of 9.3% and wholesale revenue growth of 10.6%.

The company said retail revenue showed normalising trading patterns compared with the year-ago period, when it made R222m in Covid-19 vaccine administration and testing revenue. It made R143m in the latest six-months period.

During the reporting period, a net 15 Baby Boom stores were acquired effective 1 March, extending the group's baby retail leadership position, resulting in 251 retail pharmacy stores and 53 retail baby stores as of the end of August.

($1 = R18.1195)



SOURCE

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About Nqobile Dludla

Reporting by Nqobile Dludla; Editing by Kim Coghill and Savio D'Souza

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