Half Year 2025 Dis-Chem Pharmacies Ltd Earnings Call Transcript
Key Points
- Group revenue increased by 11.1% to ZAR36.3 billion, showcasing strong financial growth.
- Profit before tax grew by 22% in the second half, driven by effective cost control and operational leverage.
- Retail revenue increased by 9.7%, supported by new store openings and a strong like-for-like sales growth of 6.9%.
- Wholesale revenue rose by 13.3% to ZAR27.4 billion, with a significant contribution from internalized sales.
- The company maintained a strong market position with a 24.6% pharmacy market share and growth in key categories like health and medical.
- The group's performance was impacted by the absence of a ZAR72 million property gain from the previous year.
- COVID-19 vaccine and testing services revenue of ZAR143 million from the prior period was not repeated, affecting overall revenue.
- Finance costs increased due to higher interest rates and property acquisition loans.
- Operating margin declined from 5.1% to 4.9%, reflecting increased costs and margin compression.
- Occupancy costs rose by 21% due to higher municipal charges and short-term leases.
Good morning, everyone, and welcome to Dis-Chem Pharmacies results for 2024. I will start off by summarizing the group highlights for the financial year-ended 2024. Before I go into each of the highlights, I would just personally like to thank my immediate team and the greater group for the support as I've started my tenure as CEO. I think fundamentally, some of the strategic objectives have been supported, and we can see them playing out in some of the highlights that I'll talk to and in the residual presentation. If we look at group, group revenue increased by 11.1% to ZAR36.3 billion.
The second half, as I mentioned earlier, delivered profit before tax growth of 22%, fundamentally a function of operational positive leverage as we managed to control cost well. And we'll talk a lot about cost control as we go through the presentation, and we saw increased revenue growth in the second half of the year. That delivered after what was a relatively poor first half that delivered earnings per share, excluding the property gain in the
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