South Africa’s Dis-Chem sales rise 12.2% on strong retail revenue

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South African pharmacy chain Dis-Chem Pharmacies said on Friday it recorded revenue growth of 12.2% in the period from September 1 to Janaury 28, helped by strong sales growth in its personal care and beauty category as well as in baby products.
In a tough macro environment, the consumer-facing industry is struggling to lift sales to double digits as price-sensitive shoppers limit their spending on clothes, shoes, appliances and, in some cases food, where inflation is particularly high.
Dis-Chem benefited from promotions on baby products, including diapers and wipes, while people attending social events during the festive season snapped up its beauty ranges.
“In line with guidance provided at the time of announcing our interim results, the group continued to deliver stronger second-half retail revenue performance through the festive period and into the fourth quarter,” Chief Executive Rui Morais said in a statement.
Retail revenue increased by 11.2% in the period compared to the corresponding period. Like-for-like retail revenue growth was 8.2% and selling price inflation averaged 6.8%.
Wholesale revenue rose by 11%, with sales to its own retail stores increasing by 9.4%. External customer revenue grew at 20% driven by its “differentiated service offering and new customers.”