Dis-Chem Pharmacies (DCP) H1 2026 earnings summary

Executive summary

• Achieved strong group performance for the six months ended August 2025, with core retail profitability up 25.8% (excluding ecosystem investments) and significant progress in integrated healthcare strategy.

• Launched Better Rewards loyalty program, driving a 224% increase in daily average sign-ups and improved customer engagement.

• Investment in X, bigly labs and Dis-Chem Life is transforming the business into an integrated healthcare provider, with ecosystem investments totaling ZAR 130 million in the period and 60% allocated to X, bigly labs and 40% to Dis-Chem Life.

• Opened 17 new retail pharmacy stores, bringing the total to 302, and expanded wholesale reach to 1,608 independently owned pharmacies.

Financial highlights

• Group revenue increased 8.7% year-over-year to R21.3 billion, with retail revenue at R18.1 billion and wholesale revenue up 11.1% to R16.8 billion.

• Total income rose 9.9% to R6.6 billion, with margin improving to 31.1% from 30.7%.

• Operating profit increased 9.0% to R1.13 billion; EPS and HEPS up 9.6% and 9.0% to 73.9 and 73.8 cents per share.

• Interim dividend declared at 29.42 cents per share, up 9.0% year-over-year.

• Inventory holding reduced by ZAR 374 million, achieving 49% of the ZAR 500 million cash unlock target for FY2026.

Outlook and guidance

• Group revenue grew 9.7% in the two months post-period; continued investment in ecosystem, loyalty program, and digital platforms expected in the second half.

• Remaining ZAR 255 million working capital unlock targeted by FY2026.

• CapEx for the year expected to be slightly less than double the ZAR 200 million already spent, with a new app launch planned for midyear FY2027.

• Confident in reaching 137,000+ square meters property target by end of FY2027, subject to developer timelines.

• Store of the future concept to be rolled out from Q1 FY2027, with all new stores and revamps adopting the new design.