Dis-Chem Pharmacies delivered a strong financial performance for the year ended February 2025, marked by double-digit earnings growth, a growing retail footprint, and focus on data-driven innovation.

Group revenue rose 8.0% to R39.2 billion, driven by solid performances across both its retail and wholesale segments.

The company reported a 20% increase in earnings per share (EPS) and headline earnings per share (HEPS), which came in at 137.6 cents and 137.5 cents respectively.

Excluding a once-off property gain related to the Midrand warehouse acquisition, underlying EPS and HEPS still rose by 12.2% and 12.3%.

A gross final cash dividend of 27.85 cents per share was declared in line with Dis-Chem’s policy of distributing 40% of headline earnings.

Dis-Chem said it is prioritising innovation and digital transformation through its new innovation hub, X, bigly labs, aimed at digitally transforming healthcare, enhancing customer engagement, and enabling agile, data-driven decision-making.

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Net store changes included the opening of 20 new stores, the closure of three retail pharmacy stores and nine baby stores, resulting in a footprint of 285 retail pharmacy stores and 45 retail baby stores.

Retail revenue rose 5.9% to R33.6 billion, supported by 20 new pharmacy store openings. However, nine baby stores were closed, reflecting a strategic recalibration of footprint efficiency.

Comparable pharmacy store revenue grew by 4.1%.

Wholesale operations outpaced retail, with revenue increasing by 9.9% to R30.1 billion. External wholesale revenue to independent pharmacies and The Local Choice (TLC) franchises surged by 22.1%, with TLC store numbers growing from 205 to 240.

Group operating profit grew by 18.3%, ahead of revenue while total income improved 9.2% to R12.1 billion, with a margin increase from 30.7% to 31%.

Retail income margin rose to 30.3% due to stronger transactional gross margins across key categories including dispensary and personal care.

Capital expenditure for the year reached R1.4 billion, with R500 million spent on expansion initiatives and R900 million on maintenance and strategic asset acquisition, including the Midrand warehouse, previously held under a lease.

Inventory levels rose by 10.4% due to store growth and buying patterns, but creditor days also improved, reflecting efficient working capital management.

Looking ahead to FY2026, the group has outlined bold growth objectives, including the launch of 39 new pharmacy stores—nine of which are already operational.

Efforts to identify strategic locations and accelerate store openings remain a priority, all aimed at reaching the three-year goal of 137,000m² in new retail space.

Additionally, the group has committed R500 million to a working capital unlock initiative, supporting the expansion of its cutting-edge “Store of the Future” omnichannel format.

A comprehensive overhaul of its digital platforms is also underway, designed to significantly enhance both online shopping and access to healthcare services.

The group said that with revenue up 8.6% in the first three months of FY2026, its momentum continues.