Capitec gives South African pharmacy giant a boost

Dis-Chem is set to release strong results for the first half of its 2026 financial year, with significant revenue growth boosted by its revised loyalty programme, which includes a partnership with Capitec.

Dis-Chem is one of South Africa’s biggest pharmacy chains, with operations in Namibia, Botswana, and South Africa. The company also has large wholesale operations.

On Friday, 20 February, Dis-Chem released a trading update for the period from 1 September 2025 to 16 February 2026.

In this 24-week period, Dis-Chem’s revenue grew by 10.1%, boosted by strong growth in both retail (9.5%) and wholesale (15.7%) revenue.

The company attributed much of this growth to its revised loyalty programme, Better Rewards. Launched in October 2025, this update brought major changes to the group’s loyalty programme.

“We experienced a solid trading performance during the period, notably on the back of the launch of our reimagined loyalty programme, Better Rewards, which launched on 21 October 2025,” the group said. 

“By applying technology, data and deep customer insights, the ‘X, biglylabs’ team continues to challenge the status quo by further evolving the Better Rewards programme.”

“Our ecosystem extends beyond the integrated healthcare ecosystem we’re building, to strategic partnerships like Capitec, where the Capitec boost is driving shared value for both brands and our shared customers.”

The company explained that, in the 17 weeks since launch, Dis-Chem has returned R410 million in savings to customers.

Dis-Chem pointed out that the new loyalty programme saw retail revenue grow by 13.7% over the 17-week period since launch, compared to 5.2% in the corresponding period.

“The market share gains we’ve seen have been particularly pleasing and stand as a proof point of innovation in action,” it said.

“Under the Better Rewards programme, pharmacy revenue grew by 13.7% driven by increasing pharmacy boost engagement and high demand for GLP-1 drugs.”

“The consistency of an always-on, health-relevant, lowest price basket is driving increased shopping frequency. Non-participating Better Rewards brands are benefiting from the halo effect of the increase in shopper trips.”

Dis-Chem further reported that its store base had grown to 355 retail stores, comprising 313 Dis-Chem Pharmacy stores and 42 Dis-Chem Baby City stores, in the period.

This is a change from the group’s most recent interim results for the six months through  August 2025, when its estate stood at 302 retail pharmacy stores and 44 retail baby stores.

Dis-Chem also recorded notable growth in its wholesale business, which saw revenue jump by 15.7%, with sales to the group’s own retail stores up 16.2%.

The company’s revenue from external customers increased by 13.7%, with The Local Choice (TLC) revenue up 14.2% and independent pharmacy revenue up 13.4%.

Dis-Chem has 281 TLC franchise stores at period-end, up from 230 at the end of the corresponding period.

Dis-Chem’s full results for the year ended 28 February 2026 are expected to be released on Friday, 29 May 2026.