CHRIS GILMOUR: Why JSE performance of Dis-Chem lags that of top competitor
Investors seem to be willing to pay more for more predictable earnings at Clicks
Dis-Chem Pharmacies is one of the better shopping experiences in SA and a destination brand. Prices are extremely keen, shelves are well stocked with appealing goods and service levels are high.
Yet its JSE share price performance since listing three years ago is lacking, compared with that of competitor Clicks, which at least doubled in that time. Dis-Chem is pretty much back to listing start, and prelisting expectations of financial results have largely disappointed.