Dis-Chem's management said the consumer affordability pressures proved more persistent than anticipated in its 2026 financial year.
Dis-Chem remains well positioned to benefit from the growing demand for accessible healthcare and wellness solutions in South Africa, even though the broader operating environment is expected to remain challenging, chairman Larry Nestadt said.
The group’s shares trade at R32.70 on Friday afternoon on the JSE, but the price has fallen by more than 16% since its annual results were published in May. CEO Luis Morais said in the annual report that the group’s management and board are “acutely aware that shareholders who invested in Dis-Chem for its earnings track record have seen a year of disappointing reported results.”
The maturing of the group’s Better Rewards programme and further customer engagement gains, the launch of the new Dis-Chem app, and the expansion of omnichannel capabilities, along with progressive returns from the X, bigly labs ecosystem investment, as well as data, analytics, and the operationalization of AI platforms, were growing the group, he said in the integrated report.
Wholesale market share opportunities would continue to be gained through CJ Distribution, TLC franchise stores, and independent pharmacy relationships. Operational and supply chain optimisation are continuing, and integrated healthcare services, including Dis-Chem Health and Dis-Chem Life, are being expanded.
