Dis-Chem Branching Out

JOHANNESBURG – Dis-Chem has gradually increased the number of their branches by 18, jumping to a total of 118, which helped them grow interim revenue 14% to R9.95 billion.

The pharmacy chain was recently listed on the JSE on November 18 following the after-tax jump of their profit from 37.4% to R409m for the six months periods end-August from matching period in 2016. “The increase is a result of the additional centralisation of vendors an better trade terms with suppliers as the group continues to increase market shares across their core categories,” CEO Ivan Saltzman said.

The pharmacy managed to grow their headline earnings per share by 38.1% to 46.8c. Their first interim divided as a listed company was set by 18.7035c per share.

“From the increased wholesale space CJ distribution will be focusing on increasing its current market share by continuing to service Dis-Chem, increasing supply to a greater number of The Local Choice (TLC) franchisees and serving a greater number of independent pharmacies,” added Saltzman.

Saltzman said the group expected low economic improvement and an increase in taxes to continue constraining consumers in the second half of their financial year.

“As proven to be the case in the first half of the first financial year, resilient markets in which groups operates will offer some protection against the relatively weak consumer environment,” stated Saltzman.

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