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S.Africa’s Dis-Chem profit jumps as drugs demand rebounds -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – Shoppers line up outside Dis-Chem Pharmacies, a South African chain of drugstores, ahead of 21-day nationwide lockdown to stop the spread coronavirus disease, COVID-19, in Johannesburg (South Africa), March 26, 2020. REUTERS/Siphiwe

(Reuters). South Africa’s Dis-Chem Pharmacies Ltd posted a 35.3% rise in half-year earnings Wednesday. The increase was due to a pent-up demand of medicines and vaccines following the easing pandemic lockdowns.

South Africa is now experiencing a return to pre-pandemic confidence. Retailers are seeing increased footfall, demand, and flexibility thanks to COVID-19 vaccine drives, loosening restrictions, and other stimulus measures. Dis-Chem saw 19.2% growth in revenue over the last two months.

Dis-Chem is the largest chain of South African pharmacies and rival to Clicks Group. It reported that it administered 450,000 COVID-19 doses over the period ended August. That number increased to 860,000 at the end October.

According to the company, however, there was an disproportionate increase in the sale of COVID-19-related products during the first and third pandemics. The transactional gross margin was lower than the annual sales growth.

According to the chain of drug stores, headline earnings per share for August was 48.7cs. This is a crucial metric for South African businesses. The company’s revenue rose 16.6%, to 14.9 billion rand ($967.49m).

$1 = 15.407 rand

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