South African pharmacy retailer Dis-Chem Pharmacies posted stronger annual revenue growth for the year ended Feb. 28, 2026, as the company added new stores, gained market share across key retail categories, and expanded its push into healthcare services through a series of new investments. The Midrand-based healthcare and retail group reported revenue of R42.8 billion ($2.64 billion), up 9.3 percent from R39.2 billion ($2.41 billion) a year earlier.

The increase came despite pressure on household spending in South Africa, where consumers continue to face high living costs and a weak economic backdrop. The latest performance also highlighted the company’s steady expansion under CEO Rui Morais, with growth supported by higher sales across both retail and wholesale operations. Profit before tax, excluding ecosystem investments, non-recurring items, and a property gain recorded in the previous year, climbed 20.1 percent to R1.8 billion ($111 million) from R1.5 billion ($92.4 million). Dis-Chem said the increase was supported by stronger operating leverage and improved retail margins.

Retail revenue rises 9 percent as pharmacy sales grow

Retail revenue rose 9 percent to R36.6 billion ($2.25 billion), helped by comparable pharmacy store sales growth of 5.3 percent as well as the opening and acquisition of 31 pharmacy stores during the year. The group closed three baby stores, ending the period with 316 pharmacy outlets and 42 baby stores. Wholesale operations also delivered a stronger performance, with revenue rising 13.1 percent to R34 billion ($2.1 billion). The increase was driven by higher sales to Dis-Chem’s own retail network and stronger demand from independent pharmacies and stores operating under The Local Choice franchise network. Revenue from external wholesale customers improved as the franchise network expanded from 240 stores to 280.

The company said total income, excluding the prior-year property gain, increased 9.6 percent to R13.2 billion ($813.2 million). Total income margin edged up to 30.8 percent from 30.7 percent a year earlier, while retail margin improved to 31.1 percent from 30.3 percent. Dis-Chem linked the gain partly to stronger transactional margins and targeted promotional campaigns supported by data analytics through X, Bigly Labs. The retailer continued investing heavily in what it describes as a broader healthcare ecosystem. During the year, Dis-Chem invested R445 million ($27.4 million) into new initiatives designed to move the business beyond its traditional pharmacy retail model. Around R330 million ($20.3 million) of that amount was allocated to establishing and expanding X, Bigly Labs and Dis-Chem Life.

Headline earnings drop 17.3 percent

While recent investments weighed on earnings in the short term, the South African pharmacy retailer said it expects them to begin contributing from fiscal 2027. Earnings per share fell 17.1 percent to R1.142 ($0.07), while headline earnings per share declined 17.3 percent to R1.137 ($0.065). The total dividend per share also decreased 17.3 percent to R0.453 ($0.02). Dis-Chem said its Better Rewards loyalty program has shown an encouraging early response since launch, with participating brands recording 12 percent revenue growth and 18.7 percent volume growth in the first 17 weeks. The company added that market share by volume rose by 1.1 percentage points across core retail categories over the period.

Alongside its loyalty strategy, the company continued investing in digital infrastructure aimed at improving customer experience and operational efficiency. Planned upgrades include the relaunch of its mobile application, broader e-commerce capabilities, and enhanced data and artificial intelligence systems focused on healthcare delivery and internal operations. Capital expenditure on tangible and intangible assets totaled R1.1 billion ($67.8 million) during the year. Of that amount, R730 million ($45 million) was directed toward expansion projects, new stores, and technology upgrades across the group’s retail and wholesale businesses.