JOHANNESBURG - JSE-Listed Dis-Chem Pharmacies stock rose by 7.86% following the release of its debut trading update which showed earnings per share (Eps) were expected to increase by 39.5percent for the six months to end August.
The share price climbed to R31.30 a share, up from Monday’s closing price of R29. The group said it expected to report Eps of between 45.7cents and 47.3c during the period and this would reflect an increase of between 34.8percent and 39.5percent. Last year, the group reported earnings per share of 33.9c.
The group is also expecting its headline earnings per share to increase by the same percentage as the Eps. “Accordingly, shareholders are advised that the headline earnings per share of between 45.7c and 47.3c, being an increase of between 34.8 percent and 39.5 percent compared to the corresponding period being 33.9c,” the group said.
The group said the above was based on the weighted average number of shares in issue (Wanos) as at August 31 being 860062450 compared to the Wanos of 794446200 for the corresponding period. Last year Dis-Chem said it would sell 238.4 million shares, equating to a 27.5percent stake, at between R16.25 and R20.25 as it prepared for the listing. The company raised R4.4billion in a share placement.
Dis-Chem said it remained focused on adding new retail stores to its base in the year ahead to its growing stores portfolio. The company increased its stores by 11 to 108 in the year to end-February. “Despite the strong start to the new financial year it is expected that the weak consumer spending environment will continue in 2017 with the ongoing political uncertainty, low economic growth and increase in taxes constraining consumers,” the group said.
The company is expected to release its results next week. Dis-Chem shares closed 7.59percent higher at R31.20 on the JSE yesterday.
- BUSINESS REPORT