Dis-Chem sales in South Africa increase by 12.2% due to robust retail revenue.

Dis-Chem sales in South Africa increase by 12.2% due to robust retail revenue.

Due to robust retail revenue, dis-Chem sales in South Africa increased by 12.2%.

Johannesburg-based Dis-Chem Pharmacies (DCPJ.J) recently unveiled promising financial results, reporting a substantial 12.2% revenue surge from September 1 to January 28. The South African drugstore chain credited this impressive performance to robust sales growth in infant products and the personal care and beauty category.

Dis-Chem defied the odds amid a challenging macro environment, where consumer-facing sectors struggle to achieve double-digit sales amidst cautious spending habits. The prevailing trend sees budget-conscious consumers limiting their purchases to essential items such as clothing, shoes, appliances, and, in some cases, high-inflation goods like food.

Dis-Chem strategically capitalized on the demand for baby supplies, including wipes and diapers, contributing significantly to its revenue boost. Additionally, the company’s cosmetic lines experienced brisk sales, particularly during the holiday season, as guests sought out these products at festive gatherings.

Rui Morais, the Chief Executive of Dis-Chem, highlighted the company’s sustained success, stating, “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.”

Comparing the results to the corresponding period, retail revenue witnessed an impressive 11.2% growth during this timeframe. Retail sales increased by 8.2% on a like-for-like basis, while the average selling price inflation stood at 6.8%.

Breaking down the revenue sources, sales to Dis-Chem’s retail locations saw a 9.4% increase, and wholesale revenue experienced an even more substantial uptick at 11%. The company’s differentiated service offering and the acquisition of new customers were cited as key drivers behind the remarkable 20% growth in revenue from external clients.

Dis-Chem’s ability to navigate a challenging economic landscape and cater to evolving consumer preferences, particularly in baby supplies and cosmetic products, has positioned the company as a standout performer in the retail sector. With a commitment to delivering a superior retail experience, Dis-Chem continues to carve a successful path in the competitive market.

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