Dis-Chem Pharmacies Reports Strong Financial Performance and Announces CEO and CFO Succession

Dis-Chem Pharmacies reports strong financial performance
  • Dis-Chem Pharmacies reports strong financial performance with 9.0% revenue growth (excluding COVID-19 vaccines and testing) for the 12-month period ending February 2023.
  • Co-founder Ivan Saltzman to step down as CEO, with Rui Morais appointed as the new CEO effective from July 1, 2023.
  • Julia Pope to succeed Morais as the new CFO, while Saltzman remains an executive director and commits to divesting shares to key senior executives, ensuring ongoing commitment and leadership continuity.

Dis-Chem Pharmacies Limited has released a trading update and trading statement for the period spanning March 2022 to February 2023. The company’s financial report highlights impressive revenue growth, excluding the contribution of COVID-19 vaccines and testing, indicating the firm’s adaptability and resilience in a changing market.

During the 12-month period, Dis-Chem achieved a remarkable revenue growth of 9.0% compared to the corresponding financial period. The retail revenue, excluding COVID-19 vaccines and testing, experienced a solid upswing of 8.4%, while external wholesale revenue saw an impressive surge of 20.7%. These figures reflect the company’s ongoing expansion efforts and strategic investments.

Anticipating the announcement of audited financial results, Dis-Chem expects to report an increase in Earnings Per Share (EPS) and Headline Earnings Per Share (HEPS) between 16.5% and 19.0% compared to the previous 12-month period. These results are indicative of the company’s strong performance and will provide investors and stakeholders with valuable insights into its financial standing. The audited financial results will be made available on May 19, 2023.

Alongside the positive trading update, Dis-Chem has unveiled significant changes in its executive leadership team. Co-founder Ivan Saltzman, who has been instrumental in the company’s journey since its establishment in 1978, will be stepping down as Chief Executive Officer (CEO) at the end of June 2023. Nevertheless, Saltzman will retain his position as an executive director, remaining actively involved in the company’s executive management team. His role will focus on the Group’s commitment to accelerating retail space growth and the trade of the retail store network.

Rui Morais, the current Chief Financial Officer (CFO), has been appointed as Saltzman’s successor and will assume the role of CEO effective from July 1, 2023. Morais, who has been with Dis-Chem since 2010 and played a pivotal role in shaping the company’s strategy, is well-positioned to lead the organization into its next phase of growth.

Julia Pope, the current executive head of finance, will succeed Morais as CFO. Pope’s six years of experience with Dis-Chem, combined with her extensive background in the retail sector, have prepared her for this crucial leadership role.

To ensure a seamless transition and demonstrate confidence in the leadership team, Saltzman has committed to divest 32.25 million Dis-Chem ordinary shares, equivalent to 3.75% of the company’s issued share capital, to Morais and a select group of key senior executives.

Praising Saltzman’s extraordinary contributions to the company, Dis-Chem Chairman Larry Nestadt emphasized the careful planning and effective management of the leadership succession process. Nestadt expressed full confidence in the leadership team’s ability to realize Dis-Chem’s strategic ambitions under Morais’ stewardship.

Acknowledging the announcement, Ivan Saltzman reflected on his 45-year journey with the company and highlighted the tremendous growth Dis-Chem has achieved under his and his wife Lynette’s guidance. He expressed unwavering confidence in the future leadership team, underscoring their shared commitment to the brand’s fundamental values. Saltzman eagerly looks forward to spending more time in stores and driving the expansion of Dis-Chem’s retail footprint.

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