Dis-Chem has reported a 7.2% increase in group revenue for the five months ended January, driven by solid performances in both the retail and wholesale segments.
Retail revenue rose by 5.6%, supported by a 2.9% increase in like-for-like sales.
Wholesale revenue increased by 11.1%, with sales to Dis-Chem’s own retail stores rising 9.6%. Revenue from external wholesale customers surged 18.8%, reflecting strong demand by independent pharmacies, where sales increased 18.2%.
The Local Choice (TLC) franchise network also contributed to the wholesale segment’s success, reporting a 19.5% revenue increase, Dis-Chem said. The number of TLC franchise stores grew to 230 from 200.
CEO Rui Morais attributed the retail segment’s recovery in January to the availability of medical aid benefits, which helped offset weaker trading during November.
“The pleasing work done in managing retail employment cost, the group’s largest expense, continued. These incremental improvements continue to contribute to positive operating leverage, and the delivery of earnings growth seen in the first half of the year,” Morais said.
“The acceleration of new store openings going into festive trade is evidence of the group’s commitment and focus on expanding its retail footprint. In line with the strategic focus of the group, this acceleration will continue into financial year 2026, with a growing number of secured sites being added to the pipeline,” he said.
Dis-Chem now operates 333 stores, comprising 286 Dis-Chem Pharmacy outlets and 47 Baby City stores.
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