Advertise with fastmoving.co.za
 
 

Dis-Chem Pharmacies says a strike by employees that lasted nearly five months shaved up to R76.4m off its profits in the year to end-February.
Dis-Chem Pharmacies says a strike by employees that lasted nearly five months shaved up to R76.4m off its profits in the year to end-February.

Dischem's employee strike costs it more than 75m

RETAILER NEWS

By Nick Hedley - May 16th, 08:31

Dis-Chem Pharmacies says a strike by employees that lasted nearly five months shaved up to R76.4m off its profits in the year to end-February. 

“Unfortunately, the industrial action which began mid-November last year heavily impacted the group’s performance,” CEO Ivan Saltzman said in a statement.

“The demands by the union were unreasonable considering the economic climate and the nature of the industry in which we operate.”

The retailer said that its headline earnings in the year rose 7.4% to R734.7m. The strike resulted in direct costs of R50.4m, partly because of increased security and legal costs, and indirect costs of between R22.3m and R26m, Dis-Chem said.

Group revenues grew 10% in the year to R21.4bn.

With the strike now over, the company is focused on developing “a productive employer-employee relationship, improving wholesale productivity levels and cost efficiency, as well as optimising the levels of stock-holding in the group, which the industrial action necessitated”.

“It is pleasing to continue to see market-share gains across all of our core categories,” Saltzman said.

Market-share gains were driven partly by the low prices and “aggressive promotional activity”.

The group declared a final dividend of 13.5c, from 12.8c previously.

Meanwhile, Dis-Chem said that in the 10 weeks to May 10, 2019, group revenue grew by 12%.

Five stores had been added since the financial year-end and another 17 store openings were planned through to February 2020, it said.



Business Live 

Related News

JIT is key to optimising the FMCG supply chain
23/07/2019 - 19:12
The ability to manufacture ‘just enough’ stock to cover orders and deliver ‘just enough’ product to every retailer is the optimal supply chain scenario in the Fast-Moving Consumer Goods (FMCG) industry. This is known as Just in Time (JIT) manufacturing and delivery.

Shoprite Group’s employees plant a sustainable garden for Bedfordview's elderly on Mandela Day
22/07/2019 - 08:49
On Mandela Day, the Checkers Gauteng Division along with Johannesburg mayor, Herman Mashaba, planted a food garden for the elderly people of De Wetshof Old Age Home in Bedfordview.

US retail sales rise as households spend more
18/07/2019 - 14:16
US retail sales increased more than expected in June, pointing to strong consumer spending, which could help to blunt some of the hit on the economy from weak business investment.

Refinery celebrates diversity with new fashion campaign
18/07/2019 - 11:39
Local fashion retailer Refinery is set to make waves across the local industry with its new spring campaign which embraces diversity, encouraging others to be unashamedly, authentically themselves.

Amazon offers $10 to Prime Day shoppers for access to their data
18/07/2019 - 09:53
Amazon.com has a promotion for US shoppers on Prime Day, the 48-hour marketing blitz that started recently: earn $10 of credit if you let Amazon track the websites you visit.