Dis-Chem's earnings soar 20% on strong cost management

Dis-Chem Pharmacies (JSE:DCPE) has announced strong annual results for the year ending 28 February 2025, with group revenue increasing by 8.0% to ZAR39.2 billion. Earnings per share and headline earnings per share both rose by 20.0% to 137.6 cents and 137.5 cents, respectively. The company attributes this growth primarily to successful cost management, particularly in payroll, which boosted operating profit by 18.3%. A final dividend of 27.85 cents per share has been declared, a 23.8% increase. Retail revenue grew by 5.9%, while wholesale revenue increased by 9.9%. Dis-Chem opened 20 new retail pharmacy stores, ending the year with 285 stores. Looking ahead, Dis-Chem anticipates continued consumer constraint but plans to expand its store footprint and focus on enhancing its digital channels and customer engagement.