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DIS-CHEM PHARMACIES LIMITED - Trading Update for the 22 weeks to 29 January 2017

Release Date: 10/02/2017 07:30
Code(s): DCP     PDF:  
Wrap Text
Trading Update for the 22 weeks to 29 January 2017

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

Trading Update for the 22 weeks to 29 January 2017

-     Retail turnover up 14,3% to R6,71 billion
-     Group turnover up 13,0% to R7,32 billion

The retail segment of Dis-Chem’s business (“Retail Business”) increased turnover by 14.3%
for the 22 weeks to 29 January 2017 over the comparable period (“the period”). Comparable
store growth and sales price inflation for the period were 9.1% and 6.5%, respectively.

Over the same period, CJ Distribution, the Group’s wholesale segment, increased turnover
by 15.2% against sales price inflation averaged 4.8%.

Total Group Turnover, grew by 13,0% to R7,32 billion.

Segmental Turnover Analysis below:

                                  Total Turnover Growth (%)    Sales price inflation for the
                                                                                period (%)
    Retail Business                                     14,3                          6,5
    Wholesale                                           15,2                          4,8
    Intragroup                                          18,0
    Total Group                                         13,0

Ivan Saltzman, Chief Executive, said “Trading over the period was in line with our
expectations. We are pleased with the trading figures coming out of the eight new stores
opened over a ten-day period in November, specifically the trading of newly opened,
convenience focussed format which traded at densities that were higher than expected.

Our Northridge store in Bloemfontein was flooded as a result of heavy rains late last year
and is being rebuilt with an expected opening in the second quarter of 2017. Although this
had no effect on our comparable turnover number, it did impact both the retail and Group
turnover numbers by 0,6%. Direct losses are fully covered by insurance.

We ctinue to expand our footprint and along with the re-opening of our Northridge store, we
can confirm that 21 new stores will be added in FY18. This new space, together with
maturing space within the existing store footprint, is expected to drive strong retail and
comparable store growth in the years ahead, both of which are supported by the resilient
health and beauty markets that we operate in.”

The financial information in this trading update has not been reviewed or reported on by the
Group’s independent auditor.

For further information, contact Abigail Ngalo on +27 (0)11 589 2482 or mail us at
investorrelations@dischem.co.za

Midrand
10 February 2017

Sponsor
The Standard Bank of South Africa Limited

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