Dis-Chem’s profit in South Africa grows on new acquisitions and drug demand

A Dis-Chem logo is seen amid a nationwide coronavirus disease (COVID-19) lockdown, at a pharmacy in Midrand, South Africa, January 18, 2021. REUTERS/Siphiwe Sibeko

Join now for FREE unlimited access to Reuters.com

Register

May 23 (Reuters) – South Africa’s Dis-Chem Pharmacies (DCPJ.J) reported an increase in its annual profit on Monday, boosted by acquisitions of new pharmacies and stronger demand for drugs amid COVID lockdowns -19 relax.

The pharmacy chain said acquisitions of dozens of locations in the year ended Feb. 28 and its recent launch of a health insurance offering helped the group expand its reach.

“In the two months since the launch of medical insurance, adoption has exceeded our initial expectations,” Dis-Chem said in a statement, though it cautioned that the consumer environment remained “ constrained”.

Join now for FREE unlimited access to Reuters.com

Register

Dis-Chem, which runs South Africa’s second-largest pharmacy chain competing with Clicks Group , said it administered 1.4 million doses of COVID-19 vaccine during the year, or 513 million rand ($32.5 million) in income.

Total revenue rose 15.7% to R30.4 billion. Overall earnings per share, a key profit metric for South African companies, jumped 27.6% to 99.2 cents for the year.

($1 = R15.7828)

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Muhammed Husain in Bengaluru; Editing by Subhranshu Sahu

Our standards: The Thomson Reuters Trust Principles.