Dis-Chem backed by Saltzman Family posts $1.2B revenue

Dis-Chem Pharmacies, one of Africa’s leading pharmaceutical retail groups, founded by the South African billionaire Saltzman family, reported higher revenue for the first half of fiscal 2025, helped by new store openings, solid wholesale demand, and its recently introduced loyalty scheme, Better Rewards. 

For the six months ended August 31, 2025, the Johannesburg-listed company booked revenue of R21.3 billion ($1.24 billion), up from R19.6 billion ($1.05 billion) a year earlier. Earnings before tax from the retail segment climbed 25.8 percent, excluding R130 million ($7.56 million) spent on building out an integrated healthcare network.

Retail performance and wholesale growth

Retail sales rose 8.3 percent to R18.1 billion ($1.05 billion), supported by steady customer traffic and 17 new pharmacy openings. Dis-Chem now runs 302 pharmacies and 44 baby stores across South Africa. The wholesale arm also performed well, with revenue increasing 11.1 percent to R16.8 billion ($976.9 million). Sales to Dis-Chem’s own outlets advanced 10.9 percent, while orders from external customers, including independent pharmacies and The Local Choice (TLC) franchise network, were up 11.6 percent.

Independent pharmacy sales gained 7.9 percent on the back of new accounts and stronger orders from existing ones. The TLC network expanded by 37 stores to 258 locations, lifting franchise revenue 16.5 percent. Dis-Chem’s wholesale unit now serves about 1,608 independent pharmacies, roughly 85 percent of South Africa’s independent market.

Steady financial position and dividend increase

More than four decades after its founding, Dis-Chem remains largely family-held, with the Saltzmans controlling about 30 percent of the shares, valued at roughly R8.49 billion ($493.6 million). The company’s balance sheet remains firm. Total assets grew 6.4 percent to R19.37 billion ($1.13 billion) from R18.2 billion a year earlier, while shareholder equity climbed to R5.65 billion ($328.2 million) from R4.86 billion ($282.3 million).

Given the earnings strength, the board declared a gross interim dividend of R0.294 ($0.017) per share, a 9 percent increase from last year, amounting to a payout of R253 million ($14.7 million) for the half-year. Despite rising competition in South Africa’s pharmacy and wellness market, Dis-Chem said it expects continued consumer demand to support growth across both its retail and wholesale operations in the coming quarters.