Dis-Chem forecasts higher revenue on beauty products demand
Dis-Chem Pharmacies Ltd said on Friday, 17 February its five-month group revenue is likely to have risen by 4.7%, as healthcare becomes a greater share of overall consumer spend and beauty product sales recovered following the Covid-19 outbreak.
Source: ©Matej Kastelic - 123RF
Dis-Chem, which runs the second-largest chain of pharmacies in South Africa by store count, said revenue for the 1 September to 5 February period rose 8.7%, excluding Covid-related sales.
With the pandemic easing and people back in offices and attending events, consumers are also spending on beauty products instead of just medicines.
Dis-Chem said it experienced a strtong recovery in the beauty caegory, helping boost retail revenue by 3.2%, while wholesale revenue rose by 8.6% for the 1 September to 5 February period.
The company's early investment in generators has resulted in minimal disruption during rolling power cuts. Its diesel expenses rose by 54% to R36m for the period.
Eskom is implementing the worst rolling blackouts on record, leaving households in the dark for up to 10 hours a day, disrupting manufacturing and hurting businesses.
Dis-Chem, which competes with Clicks Group Ltd, will release its annual results on 19 May.
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Reporting by Nqobile Dludla; Editing by Shounak Dasgupta