Dis-Chem has reported that the growing demand for GLP-1 medications is a key factor in its recent double-digit growth in dispensary revenue, reflecting a trend among South Africans opting for these costly drugs aimed at treating obesity and diabetes.For the six months ending in August, dispensary revenue increased by 10%, significantly outpacing the market value growth of 5.1%, according to Chief Executive Officer Rui Morais, who spoke with reporters following the company’s earnings announcement.
During this period, headline earnings per share dropped nearly 13%, mainly due to investments in its innovation unit, known as X, Bigly Labs, which focuses on developing a new rewards program. This occurred despite overall revenue rising by 8%.
In early trading on Friday, Dis-Chem’s shares fell as much as 12% in Johannesburg.
The rising uptake of GLP-1 medications, alongside a rewards program that incentivizes customers with discounts on additional in-store purchases, contributed to the revenue growth.
With GLP-1 medicines priced around R3,000 per prescription, their increasing popularity is significantly enhancing the overall value of Dis-Chem’s pharmacy sales.
“You’re selling a lot more very expensive products,” Morais said.
While Dis-Chem does not disclose specific revenue from GLP-1 drugs, Morais indicated that sales growth has been exponential, increasing at “hundreds of percent” over the past 12 to 18 months with consistent month-on-month gains.
As the market for cheaper generic medications is expected to expand in South Africa, this could improve accessibility, although it may also limit the impact of these drugs on dispensary revenue growth.
Dis-Chem continues to invest in data-driven promotional strategies to encourage more frequent shopping and higher spending among customers.
The company’s rewards program has attracted 8.2 million active users, who account for 86.1% of the total sales, and the program has offered R1.5 billion in benefits to customers since it began in October 2025.
Customers can enhance their discounts by utilizing Dis-Chem’s pharmacy services or by paying with a Capitec bank card.
For current active customers, shopping frequency increased by an average of two visits, and the average value of purchases grew by 3.5%.
The company plans to leverage customer data from the rewards initiative to create increasingly personalized discount offers. Dis-Chem has stated that future promotional investments will rely on predictive and adaptive strategies developed through its X, Bigly Labs unit.
Morais believes that the costs associated with these investments are now mostly integrated into the company’s operations, paving the way for enhanced earnings growth in the latter half of the year.
