Dis-chem (DCP) delivers solid interim results
Date: 17 October 2018 Category: Stock Market Share price at time of writing: R27.60 |
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We take a look at the interim result of listed pharmaceutical and personal goods retailer Dis-chem (DCP) for the 6 months ended 31 August 2018. Dis-chem is one of the JSE's newer listings and is in direct competition with bigger rival Clicks (CLS).
They both operate in a space for which there will always be a demand, as consumers will continue to by personal care items as well as medication. |
Background on Dis-chem
The following regarding Dis-chem was obtained from the website and their latest annual report
"We are a leading pharmacy group in South Africa. Our “Pharmacy First” approach, means that our customers can always depend on there being a pharmacist to serve their pharmaceutical needs whenever they enter a Dis-Chem store."
The Group employs more than 13 500 full-time and part-time employees. In November 2016, the Group listed 27.5% of its issued share capital on the Johannesburg Stock Exchange (JSE). This was the second largest initial public offering (IPO) on the exchange.
RetailThe Group’s “Pharmacy First” approach guarantees that its customers can always depend on there being a pharmacist to assist with their pharmaceutical needs whenever they enter a Dis-Chem store. In addition to the Group’s pharmaceutical products and services offering i.e. its Dispensary category, its retail front shop has Personal Care and Beauty, Healthcare and Nutrition, Baby Care and other offerings. Other offerings include confectionary, household goods and ancillary services such as clinics, and hair and beauty salons. As at 3 June 2017, the group traded from 115 stores, including 3 in Namibia, and more than 200 clinics. It has a wide range and assortment of front shop products with over 60 000 SKUs creating a competitive advantage for the group.
E-Commerce
The group launched its online platform in 2013 and even though online shopping is still a very small part of Dis-Chem’s operations, it is growing rapidly. The Click and Collect service has proven to be a success and is being provided in all stores.
WholesaleDis-Chem entered the wholesale market in 2013 when it acquired a controlling stake in CJ Distribution to service its own stores as well as third parties.Over time, Dis-Chem intends to expand its wholesale business into the distribution business whereby it would service both the wholesalers and retailers.
The interactive graphic below shows the share price history of Dis-chem since its listing in November 2016.
"We are a leading pharmacy group in South Africa. Our “Pharmacy First” approach, means that our customers can always depend on there being a pharmacist to serve their pharmaceutical needs whenever they enter a Dis-Chem store."
The Group employs more than 13 500 full-time and part-time employees. In November 2016, the Group listed 27.5% of its issued share capital on the Johannesburg Stock Exchange (JSE). This was the second largest initial public offering (IPO) on the exchange.
RetailThe Group’s “Pharmacy First” approach guarantees that its customers can always depend on there being a pharmacist to assist with their pharmaceutical needs whenever they enter a Dis-Chem store. In addition to the Group’s pharmaceutical products and services offering i.e. its Dispensary category, its retail front shop has Personal Care and Beauty, Healthcare and Nutrition, Baby Care and other offerings. Other offerings include confectionary, household goods and ancillary services such as clinics, and hair and beauty salons. As at 3 June 2017, the group traded from 115 stores, including 3 in Namibia, and more than 200 clinics. It has a wide range and assortment of front shop products with over 60 000 SKUs creating a competitive advantage for the group.
E-Commerce
The group launched its online platform in 2013 and even though online shopping is still a very small part of Dis-Chem’s operations, it is growing rapidly. The Click and Collect service has proven to be a success and is being provided in all stores.
WholesaleDis-Chem entered the wholesale market in 2013 when it acquired a controlling stake in CJ Distribution to service its own stores as well as third parties.Over time, Dis-Chem intends to expand its wholesale business into the distribution business whereby it would service both the wholesalers and retailers.
The interactive graphic below shows the share price history of Dis-chem since its listing in November 2016.
Percent change: