Wrap Text
Audited Annual Consolidated Results for the twelve months ended 28 February 2026 and dividend declaration
Dis-Chem Pharmacies Limited
(Incorporated in the Republic of South Africa)
(Registration number 2005/009766/06)
Share code: DCP
ISIN: ZAE000227831
("Dis-Chem" or "the Company" or "the Group")
Audited Annual Consolidated Results for the twelve months ended 28 February 2026
12 months to 12 months
28 February 28 February %
2026 2025 change
Group revenue R42.8 billion R39.2 billion 9.3%
Earnings per share 114.2 cents 137.6 cents (17.1%)
Headline earnings per share 113.7 cents 137.5 cents (17.3%)
Final dividend declared per share 15.92 cents 27.85 cents (42.8%)
Total dividend declared per share 45.34 cents 54.83 cents (17.3%)
Group Profit before tax * R1.8 billion R1.5 billion 20.1%
*(excluding ecosystem investment and non-recurring expenses in FY2026 and the property gain in FY2025)
Overview
The Group generated strong revenue performance in an environment where the consumer continued to be financially constrained, while
improving total income margin and gaining market share across all core retail categories. The front-loaded investment in establishing X,
bigly labs of R330 million over FY2026, has delivered proof points in the last quarter of the financial period, including Better Rewards and
our Store of the Future design (The Health Hub). The X, bigly labs investment is expected to yield net positive returns in FY2027. This
investment serves to evolve the Group from retail pharmacy to integrated healthcare provider and continues to prioritise the importance
of data-led retailing.
Basic earnings per share (EPS) and basic headline earnings per share (HEPS) are 114.2 cents and 113.7 cents per share respectively, a
decrease of 17.1% and 17.3% respectively. Excluding the once-off property gain in the prior period, this equates to a decrease of 11.3%
and 11.7% respectively.
Excluding the investment in the ecosystem, and the non-recurring expenses in the current and prior periods, Group profit before tax was
up 20.1%.
Core Retail Trading Performance
Trading performance of the core retail business, when excluding R445 million invested in the ecosystem and eliminating non-recurring
expenses, was pleasing, with core retail profit before tax increasing by 27.1% over the comparable period.
Ecosystem investments have the objective of transitioning the Group from pharmacy retailer to integrated healthcare provider ensuring
the following:
• Positioning the Group as South Africa's healthcare authority with the purpose of increasing access to care and reducing the
cost of care.
• Creating an ecosystem that positions the Group to play the dual role of healthcare provider and funder; using an innovative
operating model to reimagine and disrupt the manner in which South Africans access healthcare.
• Healthcare delivery, both products and services, to create a defensive moat that secures the traditional retail basket in an ever-
increasing competitive environment.
75%, or R330 million, of the R445 million was invested in establishing and operationalising X, bigly labs and Dis-Chem Life. The X, bigly
labs investment is aimed at generating significant returns in the core retail business over time with an expectation for net positive returns
in FY2027. Included in the R330 million is R27 million investment in marketing and operating costs for Dis-Chem Life which, with our
investments in health funding products, allows the Group to control the design of funding products to drive additional foot traffic into our
ecosystem.
During the period, proof points included the launch of Better Rewards, a new analytically-led promotional engine, and The Health Hub
that empowers operational ways of working that enable us to deliver on lower-cost and greater-access healthcare delivery.
Areas of on-going investment that are yet to realise a return include our soon-to-be relaunched app and broader e-commerce offering;
modernised data, analytics and AI platforms; and enterprise acceleration focused on process efficiencies and reduced cost to deliver
healthcare services.
25% or R115 million of the R445 million relates to the non-recurring expense to retire the benefit points program and launch Better
Rewards.
The key driver of the strong core retail performance was positive operating leverage. Like-for-like retail sales was 5.3%; with like-for-like
payroll cost, the largest contributor to retail expenses, at 3.5%.
Review of financial performance
Revenue
For the 12-months ended 28 February 2026, Dis-Chem Group revenue increased by 9.3% to R42.8 billion.
Retail revenue grew by 9.0% to R36.6 billion with comparable pharmacy store revenue growth at 5.3%. Net store changes included the
opening and acquisition of 31 retail pharmacy stores and three baby store closures, resulting in a footprint of 316 retail pharmacy stores
and 42 retail baby stores at year end.
For the 17-week since the launch of the Better Rewards programme, revenue increased by 9.6% compared to the corresponding period.
Retail revenue growth of participating Better Rewards brands increased by 12.0% compared to the corresponding period with volume
growth of 18.7%. The consistency of an always-on, health-relevant, lowest priced basket is driving increased shopping frequency. Market
share growth in volume terms, across all core retail categories, increased by 1.1 percentage points over the period.
Wholesale revenue grew by 13.1% to R34.0 billion. Wholesale revenue to our own retail stores, still the biggest contributor, grew by
13.5% while external revenue to independent pharmacies and The Local Choice ("TLC") franchisees grew by 11.3% over the comparable
period. Independent pharmacy growth was 7.2% attributable to both new customers and increased support from the current base, and
TLC growth was 16.4% due to an increase in TLC franchise stores from 240 to 280.
Total income
When excluding the property gain in the prior year, total income grew by 9.6% to R13.2 billion, with the Group's total income margin
being 30.8% compared to 30.7% in the prior comparative period.
Retail total income grew by 12.2% with the retail margin increasing from 30.3% to 31.1% over the comparable period. The increase in
retail total income margin was due to an increase in transactional gross margin across dispensary and healthcare categories, and the
impact of data-informed promotional strategies led by the commercial data intelligence team in X, bigly labs. Trade terms increased
ahead of purchases growth due to increased scale.
Wholesale total income remained consistent from the prior period, when excluding the property gain.
Other expenses
Expenses grew by 13.0% over the comparable period.
Retail expenses grew by 15.7% as the Group invested in new stores and innovation. Retail employment costs, when excluding the
investment in X, bigly labs, increased by 10.3%. Like-for-like retail employment costs continued to be well maintained at 3.5% as a
consequence of the implementation of staffing framework 1.0 and the progress made on staffing framework 2.0.
Wholesale expenses were well controlled with an increase of only 2.6%. The main increase in expenses relates to additional employee
and courier costs from the expansion into the Long Meadow warehouse.
Net finance costs
Net financing costs increased by 3.3% from the prior comparable period. Excluding finance costs from IFRS 16, net financing costs
increased by 7.1%. This increase is mainly due to the additional overdraft facility being used in the current period.
Net working capital
During the current period, the Group's inventory increased by R3 million from February 2025 notwithstanding the opening of new stores,
as the Group continues to unlock cash through the reduction of excess stock resulting in inventory days decreasing from 90.5 days at 28
February 2025, to 86.4 days. Creditors' days have declined slightly from 93.9 days to 92.3 days.
Net working capital at 24.4 days, has decreased from 24.8 days at 28 February 2025.
Capital expenditure
Capital expenditure on tangible and intangible assets of R1.1 billion included R730 million for expansionary expenditure as the Group
invested in additional stores, information technology enhancements (including the soon-to-be relaunched app and broader e-commerce
offering) across both the retail and wholesale segments. The balance of R374 million relates to maintenance expenditure incurred to
maintain the existing retail and wholesale networks.
Directorate
Mr SE Saltzman resigned from his position as Executive Director of the Company, effective 27 February 2026. Following his resignation,
Mr SE Saltzman remains on the Board (effective 27 February 2026) as a Non-Independent, Non-Executive Director.
Mr IL Saltzman and Mr SRN Goetsch announced their retirement from their positions as Executive Directors of the Company, effective 30
June 2026. Following his retirement, Mr IL Saltzman will remain on the Board (effective 1 July 2026) as a Non-Independent, Non-
Executive Director.
Dividend declaration
Notice is hereby given that a gross final cash dividend of 15.91872 cents per share, in respect of the period ended 28 February 2026 has
been declared based on the company's dividend policy of 40% of headline earnings. This is a decrease of 42.8% from the prior
comparable period. The number of shares in issue at the date of this declaration is 860 084 483. The dividend has been declared out of
income reserves as defined in the Income Tax Act, 1962, and will be subject to the South African dividend withholding tax ("DWT") rate of
20% which will result in a net dividend of 12.73498 cents per share to those shareholders who are not exempt from paying dividend tax.
Dis-Chem's tax reference number is 9931586144.
The salient dates relating to the payment of the dividend are as follows:
• Last day to trade cum dividend on the JSE: Monday, 15 June 2026
• First trading day ex dividend on the JSE: Wednesday, 17 June 2026
• Record date: Friday, 19 June 2026
• Payment date: Monday, 22 June 2026
Share certificates may not be dematerialised or rematerialised between Wednesday, 17 June 2026 and Friday, 19 June 2026, both days
inclusive. Shareholders who hold ordinary shares in certificated form ("certificated shareholders") should note that dividends will be paid
by means of an electronic funds transfer ("EFT") method. Certificated shareholders who do not have access to any EFT facilities are
advised to contact the company's transfer secretaries, JSE Investor Services (Pty) Limited at One Exchange Square, 2 Gwen Lane,
Sandown, Sandton, 2196; on 011 713 0800; or on 086 674 4381 (by facsimile), or e-mail to info@jseinvestorservices.co.za to make the
necessary arrangements to take delivery of the proceeds of their dividend. Shareholders who hold ordinary shares in dematerialised form
will have their accounts held at their CSDP or broker credited electronically with the proceeds of their dividend.
Outlook
For the period 1 March 2026 to 19 May 2026, Group revenue grew by 9.0% over the comparable period.
• Retail revenue grew by 8.8%, supported by the opening of 8 pharmacy stores and the continued market share growth from Better
Rewards.
• Wholesale revenue to external customers grew by 10.4%.
Importantly, the Group's Total Income margin increased to 32.0%.
The revenue growth, market share gains and improved total income margin, highlights the sustainability of the Better Rewards program
and the importance of this program in driving positive operating leverage and strong future earnings growth.
The Group expects that the consumer will remain constrained due to the current economic climate and increase in fuel prices. Following
the establishment of X, bigly labs, there is a shift to data-led commercial decisioning that places the customer at the centre of the
ecosystem experience.
Linked to our strategic areas of focus, the following business priorities will progress and launch in FY2027.
• Launch of the Store of the Future design which integrates healthcare services into a single cohesive customer and patient
experience. The new format reduces the cost to serve, maximizes floor efficiency and revenue return per square meter, and shifts
integrated healthcare delivery from a secondary service to the very core of the store.
• Continued acceleration of space identification and new store openings. Including the 8 stores already trading in FY2027, 35 retail
pharmacy stores are planned for the year. All stores that carry beneficial occupation dates from the 1st of August 2026 will be
executed under the new Store of the Future design principles.
• Restructured operating model focused on realigning the business's operating model to a modern operational structure that allows a
more cohesive working relationship with X, bigly lab's, a tighter span of control for the CEO and an important shift from founder-led
cross-functional leadership to a structure that creates clearer lines of accountability. An additional 200 new roles will be created in
underinvested departments.
• Continued focus of staffing framework 2.0 into the retail business.
• Reimagine online retailing and healthcare access, starting with complete revamp of digital channels.
• People and Culture: employees as our priority customers with a commitment to improve their health enabling them to access
differentiated rewards, creating 20,000 purpose-aligned ambassadors delivering on the ecosystem strategy.
Approval
The summary consolidated results of the Group were authorised for issue in accordance with a resolution of the directors on
28th of May 2026.
On behalf of the Board
Rui Morais Julia Pope
Chief Executive Officer Chief Financial Officer
This short-form announcement is the responsibility of the Company's board of directors and is only a summary of the information in the
Annual Financial Statements and therefore does not contain full or complete details. Any investment decisions by investors and/or
shareholders should be based on consideration of the Annual Financial Statements published on SENS on 29 May 2026 and on the
Company's website: www.Dischemgroup.com or https://senspdf.jse.co.za/documents/2026/jse/isse/dcpe/FY26.pdf
Copies of the full Annual Financial Statements are available for inspection at the registered office of the Company and the Company's
Sponsor, at no charge, during office hours. For more information contact investorrelations@dischem.co.za or visit our website.
The auditors, ForvisMazars, have issued an unmodified audit opinion on the 2026 annual financial statements. No disclosure exists in regard
to material uncertainty to going concern, emphasis of matter or reportable irregularities.
Supplementary information
Registered office: 23 Stag Road, Midrand, 1685
Executive directors: RM Morais (Chief Executive Officer), JD Pope (Chief Financial Officer), IL Saltzman (To retire 30 June 2026), SE Saltzman
(resignation 27 February 2026) and SRN Goetsch (To retire 30 June 2026)
Non-executive directors: LM Nestadt (Chairman), A Coovadia, JS Mthimunye, A Sithebe, H Masondo, KKD Kobue, SE Saltzman
(appointment 27 February 2026)
Company secretary: NJ Lumley
Registered auditors: Forvis Mazars
Sponsor: The Standard Bank of South Africa Limited
Transfer secretaries: JSE Investor Services Pty Limited
29 May 2026
Midrand
Date: 29-05-2026 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
