Dis-Chem (DCP) FY23 – Results Snapshot

Diluted HEPS increased to 116.4cps (+17.3% y-y).
Turnover growth +7.4% y-y, driven by growth in both Retail (+6.5% y-y) and Wholesale (+10.4%).
If the contribution of COVID-19 vaccines and testing is excluded from FY23 and FY22, retail revenue grew by 8.4% y-y.
Group GPM increased by 80bps to 23.2%.
Expense growth of +16.2% y-y, with expenses to sales increasing to 25.8% compared to 23.9% LY.
OPM improved by 30bps to 5.3%.
Total dividend of 46.6 cps based on 40% of headline earnings.
DCP is in the process of acquiring a 63 000m2 distribution centre to support the group’s retail space growth.