Dis-Chem’s earnings shoot up

DIS-CHEM Phamarcy’s headline earnings per share (Heps) is expected to increase by between,Picture: Gallo Images

DIS-CHEM Phamarcy’s headline earnings per share (Heps) is expected to increase by between 34.8% and 39.5%, Dis-Chem said yesterday in its trading statement for the six months ended August.

The South African pharmacy group said that it is expecting earnings per share to increase between the same rates as Heps. Heps and EPS will increase between 45.7c and 47.3c per share compared to EPS and Heps of 33.9c for the corresponding interim period last year. Headline earnings are a measurement of a company’s earnings based solely on operational and capital investment activities.

Dis-Chem is a specialist in beauty, health food, sport supplements, health and wellbeing. It is also in the wholesale business of serving third party and DisChem retail pharmacies through CJ’Distribution, a pharmaceutical enterprise. “Over time, Dis-Chem intends to expand CJ’Distribution’s operations into the distribution business, whereby it would serve both wholesalers and retailers,” it said.

Dis-Chem said the Heps and EPS results is based on the weighted average number of shares in issue (Wanos) as at August 31 being 860 062 450 compared to the Wanos of 794 446 200 in the preceding period. “The increase in the Wanos is as a result of the listing of te group on the JSE on November 18, 2016,” Dis-Chem said.

On the release of the trading statement yesterday, Dis-Chem’s share price increased by 5.45% and has been on the positive side for the past six months at 32.42%. The group’s results for the six months to August are scheduled to be released next week Friday.

 -NONHLANHLA MASEKO|nonhlanhlam@thenewage.co.za