Dis-Chem plans to open more than one new store every month
By Robert Laing - Oct 17th 2018, 08:56
Pharmacy chain Dis-Chem plans to maintain its expansion pace of more than one store a month, it said in its interim results.
During the first half of its 2019 financial year, the chain grew by seven stores, which added R155m to revenue, helping its overall interim revenue grow 9.4% to R10.5bn.
Dis-Chem ended August with 136 stores, 18 more than it had at the end of the first half of its 2018 financial year.
“Two stores have been added since the reporting period and an additional 13 store openings are planned through to February 2019. We reiterate our guidance to end the 2019 financial year with a minimum of 151 stores,” CEO Ivan Saltzman said in the results statement.
Dis-Chem, along with other pharmacies, has medicine prices prescribed to it by the government’s “single exit price” regime.
The results statement said the group’s internal inflation was 1.2%, lower than the 1.26% average single exit price increase that came into effect on March 1.
The group segments itself into a retail and a wholesale division.
The retail division contributes 92% of the group’s top line and offsets losses contributed by the wholesale division to the group’s bottom line.
A concern for investors is that the wholesale division’s pretax loss in the six months to end-August widened to R76m from R53m in the matching period.
“We continue to expect to break even at an ebitda [earnings before interest, tax, depreciation and amortisation] level in the wholesale division for the 2019 financial year,” Saltzman said.
“This will be driven by additional scale on the back of internal and independent pharmacy sales growth as we access new markets as a result of our newly invested warehouse space.”
The retail division grew its pretax profit by 13% to R711m, helping the overall group report a 10% growth in pretax profit to R635m.
Dis-Chem raised its interim dividend by 10.5% to 20.7c from 18.7c.Business Live
Pick n Pay introduces blood oranges to its fresh produce offering
22/03/2019 - 10:19
Fruit lovers no longer have to travel to Europe to taste the goodness of blood oranges. Pick n Pay has added rare blood oranges to its fresh produce offering making it the first retailer to offer this unique fruit to customers.
Instagram adds shopping feature for US users
22/03/2019 - 09:34
Facebook’s Instagram is trialling a feature that lets US users shop from the photo-sharing app by using a “checkout” option on items tagged for sale, the company said.
Retail sales recover in January after dismal December figures
22/03/2019 - 09:23
Retail spending showed signs of recovery in January, growing 1.2% on an annualised basis, slightly faster than analysts had expected.
Tips for small business owners to survive load-shedding
20/03/2019 - 09:36
With small businesses already dealing with hikes in VAT and petrol, coupled with decreased consumer spending, load-shedding is a bridge too far, particularly for restaurateurs.
Asos sales up 13% as UK market outperforms
20/03/2019 - 09:25
Asos has reported a rise in its quarterly sales, as growth at home in the UK continues to outperform its foreign markets.