Dis-Chem sees double-digit earnings and dividend growth
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GUEST - Rui Morais, CEO of Dis-Chem
South African pharmacy group Dis-Chem reported a 16.3% jump in headline earnings for the six months ended 31 August 2024, it announced on Sens on Friday.
Dis-Chem also posted a 16.1% surge in its dividend per share, which amounts to 26.98 cents, compared to 23.2 cents in the corresponding period in 2023.
The group’s share price traded over 2% lower on Friday morning, at around R36.35 a share.
Dis-Chem attributes the strong earnings growth largely to the containment of group payroll costs, predominantly driven by the successful deployment of its ‘staffing framework 1.0’-strategy. Staffing framework 1.0 focuses on achieving the optimal mix of staff to ensure efficient operations at store level.
In the period under review, Dis-Chem’s like-for-like retail employee costs increased by just 0.7%, but wholesale expenses jumped 13.2% – mainly as a result of the acquisition of the Longmeadow warehouse in Gauteng.
For the half-year, Dis-Chem saw its revenue rise by 9.6% to R19.6 billion, while operating profit surged 17.5%.
Six new retail pharmacy stores were opened, resulting in 274 retail pharmacy stores and 53 retail baby stores as at 31 August 2024, it noted.
South African pharmacy group Dis-Chem reported a 16.3% jump in headline earnings for the six months ended 31 August 2024, it announced on Sens on Friday.
Dis-Chem also posted a 16.1% surge in its dividend per share, which amounts to 26.98 cents, compared to 23.2 cents in the corresponding period in 2023.
The group’s share price traded over 2% lower on Friday morning, at around R36.35 a share.
Dis-Chem attributes the strong earnings growth largely to the containment of group payroll costs, predominantly driven by the successful deployment of its ‘staffing framework 1.0’-strategy. Staffing framework 1.0 focuses on achieving the optimal mix of staff to ensure efficient operations at store level.
In the period under review, Dis-Chem’s like-for-like retail employee costs increased by just 0.7%, but wholesale expenses jumped 13.2% – mainly as a result of the acquisition of the Longmeadow warehouse in Gauteng.
For the half-year, Dis-Chem saw its revenue rise by 9.6% to R19.6 billion, while operating profit surged 17.5%.
Six new retail pharmacy stores were opened, resulting in 274 retail pharmacy stores and 53 retail baby stores as at 31 August 2024, it noted.