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‘The resilient markets in which the group operates will offer protection against the weak environment.'
‘The resilient markets in which the group operates will offer protection against the weak environment.'

Wholesale turnover growth outpaces retail at Dis-Chem

RETAILER NEWS

By Robert Laing - May 4th 2018, 14:06

‘The resilient markets in which the group operates will offer protection against the weak environment.' 

Dis-Chem added 21 stores to end its financial year with 129 outlets.

This helped the group, which owns pharmaceutical wholesaler CJ Distribution and courier company Optipharm besides its flagship retail chain, grow revenue by 13% to R20.3bn for the year to end-February, it reported last week.

Dis-Chem’s net profit grew a more muted 6.6% to R698m.

The group declared a final dividend of 12.7c, taking its total for its first full year on the JSE to 31.4c.

Pharmacy chain Dis-Chem added 21 stores to end its financial year with 129 outlets.

Dis-Chem said turnover from its retail arm grew 15% from the prior year. Excluding new stores, retail turnover grew 6.6%.

Product inflation was estimated at 2.9% for the year and its wholesale arm grew turnover by 19.6%.

"The group expects that the consumer will continue to remain constrained despite improving sentiment," CEO Ivan Saltzman said in the outlook section of the results statement.

"As was the case previously, the resilient markets in which the group operates will offer protection against the weak environment; the group is well positioned to benefit from additional consumer disposable income."

Saltzman said the group had increased its turnover by 11% for the first eight weeks of the financial year underway, compared with the matching period in 2017.

© BusinessLIVE MMXVIII 

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