Dis-Chem loses R7 billion in three months

Dis-Chem has seen a significant drop in its market cap since the end of May 2026 as the Saltzman family relinquished control of the company.

Dis-Chem’s market cap stood at R32.8 billion on 27 May 2026, two days before the release of its financial results for the year ended 28 February 2026.

However, the disappointing results have caused its share price to slip from R38.19 per share on 27 May 2026 to R30.00 today. This saw its market cap drop to R25.8 billion.

In its annual financial results, it saw revenue increase by 9.3% to R42.8 billion. Its store network also grew to 316 retail pharmacy stores and 42 retail baby stores.

However, the group’s basic earnings per share (EPS) fell by 17.1% to 114.2 cents per share. Its basic headline earnings per share (HEPS) also fell by 17.3% to 113.7 cents per share.

The group’s final dividend per share was also down by 42.8% to 15.92 cents, while its total dividend fell by 17.3% to 45.34 cents.

The drop in earnings came amid a significant increase in expenses, which rose by 13.0% over the period. Retail expenses rose by 15.7% as the group invested in new stores and innovation initiatives.

The group also invested R330 million to establish its new innovation and research and development hub, X, Bigly Labs.

The hub has been responsible for launching the new Better Rewards loyalty programme and opening the Store of the Future design in Melrose Arch.

Retail employment costs, excluding the investment in X and Bigly Labs, also increased by 10.3%.

“Excluding the investment in the ecosystem and the non-recurring expenses in the current and prior periods, group profit before tax was up 20.1%,” the group said.

Founders step away from the group

The disappointing results and share performance for Dis-Chem come as the Saltzman family gave up control of the company.

Dis-Chem founder Ivan Saltzman stepped down as an executive director of the group on 30 June 2026.

He then served on the group’s board as a non-executive director. However, he left that role on 24 July 2026.

“Ivan believes that the timing is appropriate to facilitate Board succession, while allowing the Company to continue building on its strong foundations,” the group said.

He initially resigned as CEO of the group in 2023, with CFO Rui Morais stepping into the top job.

Saltzman’s co-founder and wife, Lynette Saltzman, resigned as an executive director in 2022 to focus on an operational role in the retailers’ beauty category.

Their son, Saul Saltzman, also resigned as an executive director of the group last year. Like his father, he also resigned as a non-executive director of the board this year.   

In addition to the operational changes, the family has also altered its financial holdings, with sons Dan and Mark inheriting shares in 2025.

The two brothers then sold shares worth around R320 million between January and February of this year.

Outside of the Saltzman family, another major leadership change was the resignation of executive director Stanley Goetsch.

Goetsch, a qualified pharmacist, worked at Dis-Chem for 42 years and retired as executive director, effective 30 June 2026.

Dis-Chem Finances	FY26	FY25	% Change
Group revenue	R42.8 billion	R39.2 billion	9.3%
Earnings per share	114.2 cents	137.6 cents	(17.1%)
Headline earnings per share	113.7 cents	137.5 cents	(17.3%)
Final dividend declared per share	15.92 cents	27.85 cents	(42.8%)
Total dividend declared per share	45.34 cents	54.83 cents	(17.3%)
Group Profit before tax	R1.8 billion	R1.5 billion	20.1%

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