PHARMACIES
Dis-Chem forecasts share earnings leap
Pharmacy and cosmetic sales have averaged 10% growth for 2017
Dis-Chem Pharmacies said on Tuesday that headline earnings per share in the six months to August 2017 were set to be 34.8%-39.5% higher than those of the matching period in 2016. That is based on the weighted average number of shares in issue being 860-million, compared to 794-million in the prior period. This comes after the listing of 27.5% of the group’s issued share capital on the JSE on November 18 2016. Damon Buss, an analyst at Electus Fund Managers, said on Tuesday Dis-Chem’s trading update was largely in line with Electus forecasts. Reasons for the growth included that pharmacy and cosmetic sales had averaged 10% growth in the year to date for 2017, compared with about 6.5% total retail sales growth, as Statistics SA data showed. "Dis-Chem and Clicks dominate this category and have been gaining market share from the independent pharmacies, hence they are outperforming the Stats SA numbers," he said. Buss said that the bulk of Dis-Chem’s products were necessities. These were...
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