(Reuters) – South Africa’s Dis-Chem Pharmacies reported a rise in annual profit on Monday, buoyed by acquisitions of new drugstores and stronger demand for medicines as COVID-19 lockdowns ease.
The drugstore chain said the acquisitions of dozens of locations during the year ended Feb. 28, and its recent launch of a health insurance offering have helped the group broaden its focus.
“In the two months since launching medical insurance, uptake has exceeded our initial expectations,” Dis-Chem said in a statement, although it warned the consumer environment remained “constrained.”
Dis-Chem, which runs the second-largest chain of pharmacies in South Africa in competition with Clicks Group, said it administered 1.4 million COVID-19 vaccine doses during the year, resulting in 513 million rand ($32.5 million) in revenue.
Total revenue climbed 15.7% to 30.4 billion rand. Headline earnings per share, a key metric of profit for South African companies, jumped 27.6% to 99.2 cents for the year.
($1 = 15.7828 rand)
(Reporting by Muhammed Husain in Bengaluru; Editing by Subhranshu Sahu)
