Dis-Chem forecasts over 30% increase in earnings for first half of the year.
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Dis-Chem, a pharmacy retailer, anticipates its earnings for the six months ended 31 August to climb by 32.6 percent to 37.6 percent.
Dis-Chem stated in a trade update on Monday that earnings per share are projected to rise to between 47.7 cents and 49.5 cents, up from 36 cents in the first half of 2021.
The company expects the same growth in headline profits per share. The drugstore retailer also provided an update on its R195 million acquisition of a 25% stake in health company Kaelo, stating that the transaction had been authorized by the Competition Tribunal.
Kaelo offers gap and primary health insurance solutions, as well as the AskNelson psychological wellbeing portal and occupational health clinics.
Dis-Chem stated that the acquisition will allow them to enter the South African market of 12.4 million people who are employed but do not have medical insurance. “This transaction, together with previous investments and acquisitions, positions Dis-Chem to augment the provision of care in a rapidly evolving primary care landscape.
Dis-Chem and Kaelo are both committed to playing leading roles in the ubiquitous access to affordable and quality private primary healthcare,” said Dis-Chem.
Story by : Norvisi Mawunyegah