South African executive Rui Morais is steering Dis-Chem Group through a growth push that has lifted the healthcare retailer’s revenue and strengthened its market position. Morais, the company’s CEO, said his long-term ambition extends beyond financial results, framing Dis-Chem’s expansion as a way to reshape healthcare and widen access.

“If I strip away every number and every result, here’s what’s true for me,” Morais wrote on LinkedIn. He said he hopes that decades from now, people will remember Dis-Chem as a business that was bold enough to “swing for the fences” and reimagine healthcare, with competitors following its lead and more people benefiting.

Growth behind the valuation

The comments came as Dis-Chem’s scale continues to expand. At midday Thursday, Oct. 1, the company’s shares traded at R26.98, valuing the Midrand-based group at about R23.26 billion ($1.4 billion). Its latest annual results show how store expansion, market-share gains and healthcare investments are translating into higher revenue and profit.

Revenue reached R42.8 billion ($2.64 billion) in the year ended Feb. 28, 2026, up 9.3% from R39.2 billion a year earlier. The increase came despite pressure on South African households from elevated living costs and a weak economic backdrop, with higher sales across Dis-Chem’s retail and wholesale operations supporting the advance.

Profit before tax, excluding ecosystem investments, nonrecurring items and a property gain recorded in the prior year, rose 20.1 percent to R1.8 billion ($111 million), from R1.5 billion. Dis-Chem attributed the improvement to stronger operating leverage and better retail margins, underscoring the earnings benefit emerging alongside its expansion strategy.

Stores and wholesale gain

Retail revenue climbed 9 percent to R36.6 billion ($2.25 billion), helped by 5.3 percent comparable pharmacy-store sales growth and the opening or acquisition of 31 pharmacy stores. Dis-Chem closed three baby stores during the year, ending the period with 316 pharmacy outlets and 42 baby stores as it reshaped its store network.

Wholesale revenue increased 13.1 percent to R34 billion ($2.1 billion), driven by higher sales to Dis-Chem’s retail network and stronger demand from independent pharmacies and stores operating under The Local Choice franchise. External wholesale revenue also benefited as the franchise network expanded to 280 stores from 240 during the year.

Margins move higher

Margins showed further improvement. Total income, excluding the prior-year property gain, rose 9.6 percent o R13.2 billion ($813.2 million), while the total income margin edged up to 30.8 percent from 30.7 percent. Retail margin widened to 31.1 percent from 30.3 percent, with Dis-Chem citing stronger transactional margins and targeted promotions.

Dis-Chem is also putting capital behind a broader healthcare ecosystem. The group invested R445 million ($27.4 million) in new initiatives during the year, moving beyond its traditional pharmacy-retail model. About R330 million ($20.3 million) went toward establishing and expanding X, Bigly Labs and Dis-Chem Life, according to the company.

Building beyond pharmacy

For Morais, the investment push is ultimately tied to reach rather than size alone. He said the commercial side matters because Dis-Chem needs to win, but described the larger objective as becoming a “momentum starter” whose innovations force other businesses to raise their standards, potentially improving healthcare for millions.