DIS-CHEM PHARMACIES LIMITED - Trading Statement

Trading Statement

Dis-Chem Pharmacies Limited
(Incorporated in the Republic of South Africa)
(Registration number 2005/009766/06)
JSE share code: DCP
ISIN: ZAE000227831
(“Dis-Chem” or “the Company” or “the Group”)

TRADING STATEMENT

In terms of the Listings Requirements of the JSE Limited (“JSE”), a company is required to issue a
trading statement once it is satisfied that a reasonable degree of certainty exists that the financial
results for the period to be reported upon will differ by at least 20% from the financial results for the
previous corresponding period.

Accordingly, shareholders are advised that in respect of the six-months ended 31 August 2022, the
Company is expecting to announce earnings per share (“EPS”) and headline earnings per share
(“HEPS’’) of between 69.5c and 70.8c. This is an increase of between 43.6% and 45.9% compared to
the published EPS number of 48.4c for the six-months ended 31 August 2021, and an increase of
between 43.1% and 45.4% compared to the published HEPS number of 48.7c for the six-months ended
31 August 2021.

                            1H22                       1H23 expected              % change
 EPS                        48.4c                      69.5c – 70.6c              43.6% to 45.9%
 HEPS                       48.7c                      69.7c – 70.8c              43.1% to 45.4%

On 1 April 2022, the Group acquired 100% of the shares in CT Distribution Proprietary Limited, KZN
Warehouse Proprietary Limited and Eleadora Proprietary Limited. This was a related party transaction
due to the companies acquired being owned by directors, previous directors and prescribed officers
of Dis-Chem, who are also shareholders of Dis-Chem. These acquisitions resulted in the release of the
existing lease liabilities and right-of-use assets on the statement of financial position resulting in a R72
million gain recognised in other income in the statement of comprehensive income. If this once-off
gain is excluded from the wholesale segment, which is indicative of the trading performance of the
business, the expected EPS and HEPS of the Group would be between 63.3c and 64.6c. This is an
increase of between 30.8% and 33.1% compared to the published EPS for the six-months ended 31
August 2021, and an increase of between 30.4% and 32.6% compared to the published HEPS number
for the six-months ended 31 August 2021.

                            1H22                       1H23 expected              % change
 EPS                        48.4c                      63.3c – 64.4c              30.8% to 33.1%
 HEPS                       48.7c                      63.5c – 64.6c              30.4% to 32.6%

The Group is pleased with the performance of the six-months ended 31 August 2022. The strong
operational performance is underpinned by continued market share growth, most noticeably in the
Pharmacy market, as well as an increase in total income margin across all core categories. This increase
is due to the normalisation of transactional gross margins with fewer lower margin COVID-19 related
lines, as well as continued improvement in back-end trading terms and service income through
increasing scale and continued focus on return on invested capital (ROIC). The focus on ROIC delivered
a further improved net working capital position resulting in strong cash generation.
The financial information contained in this announcement has not been audited, reviewed or reported
on by the Group’s external auditors.

Dis-Chem will release its results for the six-months ended 31 August 2022 on 2 November 2022. There
will be a pre-recorded webcast at 10:00 am which can be accessed using the following link:
https://www.corpcam.com/Dischem02112022. The recording will be available on the Group’s website
shortly after the presentation at www.dischemgroup.com.


Midrand
24 October 2022

Sponsor
The Standard Bank of South Africa Limited

Date: 24-10-2022 07:05:00
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