Dis-Chem Pharmacies Limited
(Incorporated in the Republic of South Africa)
(Registration number 2005/009766/06)
JSE share code: DCP ISIN: ZAE000227831
(“Dis-Chem” or “the Company” or “the Group”)


INTERIM CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2025


                                                    6 months to                     6 months to
                                                    31 August                       31 August                        %
                                                    2025                            2024                             change


Group revenue                                       R21.3 billion                   R19.6 billion                    8.7%
Earnings per share                                  73.9 cents                      67.4 cents                       9.6%
Headline earnings per share                         73.8 cents                      67.7 cents                       9.0%
Dividend declared per share                         29.42 cents                     26.98 cents                      9.0%


Overview
Following the identification of the eight strategic areas of focus aimed at delivering sustainable shareholder returns, the Group has made
pleasing progress in each of these areas. The launch of our new loyalty programme, Better Rewards, on 21 October 2025, marks the next
chapter in the journey to increase access to quality primary healthcare and reduce its cost. This programme reimagines how loyalty can
empower participation in a healthcare ecosystem, unlocking tangible value that customers can reinvest in their health. Supported by a
broader portfolio of healthcare and financial services, Better Rewards is designed to compound good health decisions over time,
rewarding individuals for the proactive management of their wellbeing and chronic conditions.
X, bigly labs by Dis-Chem serves as the innovation engine behind this transformation. The team applies technology, data and deep
customer insight to solve complex challenges and spearheads an execution model that strengthens customer-centred growth. The
launch of Better Rewards stands as a proof point of innovation in action, a smarter and more connected health ecosystem where cutting-
edge technology and customer obsession converge to create meaningful value.
Through the Better Rewards Pharmacy Boost, customers are rewarded for filling their scripts and adhering to chronic treatments,
reinforcing our focus on prevention and protection rather than reaction. Better Rewards demonstrates how our purpose, technology and
scale combine to make quality healthcare more affordable, more accessible and more human.
Basic earnings per share (EPS) and basic headline earnings per share (HEPS) are 73.9 cents and 73.8 cents per share respectively, an
increase of 9.6% and 9.0% respectively.

Core Retail Trading Performance
Trading performance of the core retail business when excluding R130 million invested in the integrated healthcare ecosystem was
pleasing, with core retail profit before tax increasing by 25.8% over the comparable period.
Ecosystem investments have the objective of transitioning the Group from pharmacy retailer to integrated healthcare provider ensuring
the following:
     •    Establishment as South Africa’s healthcare authority with the purpose of increasing access and reducing the cost of care.
     •    Creating an ecosystem that positions the Group to play the dual role of healthcare provider and funder; using an innovative
          operating model to reimagine and disrupt the manner in which South Africans access healthcare.
     •    Healthcare delivery, both products and services, creates a further resilience that secures the traditional retail basket and
          increasing customer lifetime value.
60% of the R130 million was invested in establishing and operationalising X, bigly labs. The investment is aimed at generating returns in
the core retail business over time. During the period, proof points included the launch of Better Rewards, a new analytically led
promotional engine, and improvements in omnichannel retailing.
40% of the investment was in Dis-Chem Life, with the majority being in marketing and operating costs as we invest to establish the brand
and scale the business. Dis-Chem Life’s products are centred in the integrated healthcare ecosystem and are designed to encourage and
reward policyholder health through Better Rewards.
The fundamental reason for the strong result in core retail was the positive operating leverage relationship between retail total income
and retail operating costs. Dis-Chem Health, included in core retail, is now contributing positively to the performance of the retail
business.

Review of financial performance
Revenue
During the six-month period from 1 March 2025 to 31 August 2025, Dis-Chem recorded Group revenue growth of 8.7% to R21.3 billion.
Retail revenue grew by 8.3% to R18.1 billion with comparable pharmacy store revenue growth at 5.4%. During the six months to
31 August 2025, 17 retail pharmacy stores were opened, resulting in 302 retail pharmacy stores and 44 retail baby stores as at
31 August 2025.
Wholesale revenue grew by 11.1% to R16.8 billion. Wholesale revenue to our own retail stores, still the biggest contributor, grew by
10.9% while external revenue to independent pharmacies and The Local Choice (TLC) franchises grew by 11.6% over the comparable
period. Independent pharmacy growth was 7.9% attributable to both new customers and increased support from the current base, and
TLC growth was 16.5% due to a combination of an increase in TLC franchise stores from 221 to 258 together with increasing support of
the supply chain from existing TLC franchisees. The wholesale business now services 1,608 independently owned pharmacies,
representing approximately 85% of the independently owned pharmacy market.

Total income
Total income grew by 9.9% to R6.6 billion, with the Group’s total income margin being 31.1% compared to 30.7% in the prior
comparative period.
Retail total income grew by 10.7% with retail total income margin increasing from 30.2% to 30.8% over the comparable period. The
increase in retail total income margin was predominantly due to an increase in transactional gross margin across all core categories.
Trade terms increased ahead of purchases growth due to increased scale.
Wholesale total income grew by 5.0%.

Other expenses
Expenses grew by 10.1% over the comparable period.
Retail expenses grew by 11.7% as the Group continued to invest in new stores while retail employment cost, which accounts for 54% of
total retail expenses, increased by 8.4%.
Like-for-like retail employee costs increased by 2.5%, following the continued success of the staffing framework, where the emphasis was
on achieving the consistent and optimal mix of staff to ensure that stores run efficiently and without compromising the differentiated
service levels that our customers have come to know and expect.
Wholesale expenses grew by 2.5% due to cost efficiencies across the network while employment costs increased by 5.7% due to the
additional staff in the Longmeadow warehouse.

Net finance costs
Net financing costs increased by 3.2% from the prior comparable period. Excluding finance costs from IFRS 16, the net financing costs
increased by 13.1%, due to the new loan for the acquisition of the Midrand warehouse on 1 December 2024, and decreased by 9.6%
when the Midrand loan is excluded.

Net working capital
During the current period, the Group’s inventory decreased by R374 million or 4.7% from February 2025, as we target a reduction in
inventory days of 10% over the medium term, resulting in inventory days decreasing from 90.5 days at 28 February 2025, to 85.8 days.
Creditors days decreased slightly from 93.9 days to 93.1 days.
Net working capital at 22.5 days, has improved from 24.8 days at 28 February 2025.


Capital expenditure
Capital expenditure on tangible and intangible assets of R460 million comprised of R288 million for expansionary expenditure as the
Group invested in additional stores, as well as information technology enhancements across both the retail and wholesale segments. The
balance of R172 million relates to replacement expenditure incurred to maintain the existing retail and wholesale networks.


Directorate
Mr Saul Saltzman is formally resigning from his position as Executive Director of the Company effective 27 February 2026. Following his
resignation, Mr Saltzman will remain on the Board (effective 27 February 2026) as a Non-Independent, Non-Executive Director continuing
to contribute actively to the Company’s strategic direction.


Dividend declaration
Notice is hereby given that a gross interim cash dividend of 29.41734 cents per share, in respect of the interim period ended 31 August
2025 has been declared based on 40% of headline earnings. This is an increase of 9.0% from the prior comparable period. The number
of shares in issue at the date of this declaration is 860 084 483. The dividend has been declared out of income reserves as defined in the
Income Tax Act, 1962, and will be subject to the South African Dividend Withholding Tax (“DWT”) rate of 20% which will result in a net
dividend of 23.53387 cents per share to those shareholders who are not exempt from paying dividend tax. Dis-Chem’s tax reference
number is 9931586144.
The salient dates relating to the payment of the dividend are as follows:
•   Last day to trade cum dividend on the JSE: Tuesday, 18 November 2025
•   First trading day ex dividend on the JSE: Wednesday, 19 November 2025
•   Record date: Friday, 21 November 2025
•   Payment date: Monday, 24 November 2025

Share certificates may not be dematerialised or rematerialised between Wednesday, 19 November 2025 and Friday, 21 November 2025,
both days inclusive. Shareholders who hold ordinary shares in certificated form (“certificated shareholders”) should note that dividends
will be paid by means of an electronic funds transfer (“EFT”) method. Certificated shareholders who do not have access to any EFT
facilities are advised to contact the company’s transfer secretaries, JSE Investor Services (Pty) Limited at One Exchange Square, 2 Gwen
Lane, Sandown, Sandton, 2196; on 011 713 0800; or on 086 674 4381 (by facsimile), or e-mail to info@jseinvestorservices.co.za to make
the necessary arrangements to take delivery of the proceeds of their dividend. Shareholders who hold ordinary shares in dematerialised
form will have their accounts held at their CSDP or broker credited electronically with the proceeds of their dividend.
Outlook
For the two-month period 1 September to 26 October 2025, Group revenue grew by 9.7% over the prior comparable period.
The Group expects that the consumer will remain constrained due to the current economic climate. Following the establishment of X,
bigly labs, the Group’s innovation hub, there’s a shift to data-led commercial decisioning that places the customer at the centre of the
ecosystem experience.
Linked to our strategic areas of focus, the following business priorities will continue through FY2026 and beyond

•   Continue acceleration of space identification and new store openings towards achieving the target of 137,000m². Including the 20
    stores already trading in FY2026, 32 retail pharmacy stores are planned for the year.
•   Store of the future design to facilitate true omnichannel retailing and healthcare delivery, incorporating ecosystem elements aligned
    to brand architecture, with the first store trading in Q1 FY2027
•   Continue to evolve and simplify promotional mechanisms following the successful first phase deployment with the launch of Better
    Rewards across October month-end.
•   Continue focus on staffing framework 2.0 in the retail business
•   Continue the working capital unlock to achieve R500 million by the end of FY2026
•   Reimagine online retailing and healthcare access, with a new app to be launched midyear FY2027
•   Build increased customer engagement with enhanced value creation driving customer lifetime value across the ecosystem
•   Following the launch of the Capitec strategic partnership, add synergistic brands to provide access to mass market South Africa and
    improve Better Rewards’ value proposition
•   People and Culture: employees as our priority customers with a commitment to improve their health enabling them to access
    differentiated rewards, creating 20,000 purpose-aligned ambassadors delivering on the ecosystem strategy


The information contained in the outlook commentary has not been audited or reviewed by the Group’s independent auditors.


Approval
The interim consolidated results of the Group were authorised for issue in accordance with a resolution of the directors on
29 October 2025.
On behalf of the Board of Directors


Rui Morais                     Julia Pope
Chief Executive Officer        Chief Financial Officer


THIS IS A SUMMARY OF THE INFORMATION IN THE FULL RESULTS ANNOUNCEMENT, WHICH IS AVAILABLE ON OUR WEBSITE:
DISCHEMGROUP.COM
This short-form announcement is the responsibility of the Company’s board of directors and is only a summary of the information in the
full announcement and therefore does not contain full or complete details. Any investment decisions by investors and/or shareholders
should be based on consideration of the full announcement published on SENS on 30 October 2025 and on the Company’s website:
Dischemgroup.com or https://senspdf.jse.co.za/documents/2025/jse/isse/dcpe/HY26.pdf.
Copies of the full announcement are available for inspection at the registered office of the Company, at no charge, during office hours.
For more information contact investorrelations@dischem.co.za




Supplementary information
Registered office: 23 Stag Road, Midrand, 1685
Executive directors: RM Morais (Chief Executive Officer), JD Pope (Chief Financial Officer), IL Saltzman, SE Saltzman (resignation 27
February 2026), and SRN Goetsch
Non-executive directors: LM Nestadt (Chairman), A Coovadia, JS Mthimunye, A Sithebe, H Masondo, KKD Kobue and SE Saltzman
(appointment 27 February 2026).
Company secretary: NJ Lumley
Registered auditors: Forvis Mazars
Sponsor: The Standard Bank of South Africa Limited
Transfer secretaries: Current: Computershare Investor Services Proprietary Limited. Effective 13 November 2025: JSE Investor Services
(Pty) Limited


30 October 2025
Midrand