Dis-Chem Pharmacies (JSE: DCP) share price, discussion & sentiment

Added DCP to my portfolio

Pulled the latest SENS filings, margin pressure is real but cash position still solid

@jim_jse4 ja, pharmacy business is proving more resilient than expected given the retail environment

Feels like we're in the second half down by 10, need a try.

@guppy_jse fair point, but what's the exit plan if margins don't recover?

Pharmacy network's still holding up better than the broader retail beat, which is something.

Holding here at 30.06, but the margin squeeze is real. Dis-Chem's been under pressure from input costs and foot traffic patterns, yet the dividend yield still sits above most retail peers. Catalysts moving forward depend on whether they can stabilise that gross margin back towards historical levels, otherwise you're just collecting yield on a shrinking asset. Patience looks like a real good idea, but need to see the numbers improve in the next couple of results.

target 45 by christmas. easy.

Pharmacies under pressure from load-shedding and flat foot traffic. Balance sheet holding up though.

Closed at 29.85 and honestly the margin compression is the real story, not the volume. Clicks are moving but foot traffic matters more in pharmacy retail and that's been dodgy. Reckon if they can stabilize the Dis-Chem branded stuff and keep the script business ticking over, there's something there long term, but this isn't a catch the express train moment yet.

Morning all, let's see what DCP does today

DCP playing like the Bafana, can't find the net

Pulled the latest results, pharmacy network still solid

Morning all, DCP holding up?

Been digging through the H1 results and the pharmacy margin story is getting tighter, not looser. Like-for-like sales growth is there but you're watching GPM compress while fixed costs stay sticky. Compare that to Clicks and they've got way more diversification in beauty and wellness. DCP is still pharmacy-first, which is solid, but the thesis only works if they can keep the store count growing and push private label harder. At 29.85 the valuation isn't punishing them for it yet.

Just bought a small parcel at 29.85 to see how this plays out. Dis-Chem's been taking a beating but the foot traffic in stores is still there, at least from what I see. Question for the room, how bad is the margin squeeze really when you factor in their own brands, or am I missing something obvious.

Disk space getting squeezed at store level with load-shedding eating into foot traffic, and the margin compression from generics is real. At 29.85 you're paying for a business that's growing headcount faster than sales per store, which tbh isn't a great look when Shoprite's got better scale and Clicks is moving upmarket. Long term the loyalty programme helps but I need to see same-store sales turn before I'm interested.

Dis-Chem's been getting hammered but at 29.85 you're paying single digit multiples on earnings if they can hold margin through this squeeze. Problem is foot traffic in malls is still weak and their own label stuff isn't moving like it used to. Might be a trap for the brave.

dis-chem's been getting hammered since the earnings miss, sitting at 29.85 with pharmacy margins compressed across the board. comparing to clicks, they're trading at a discount but the question is whether that's value or a trap given load-shedding crushing foot traffic. if they can stabilize their own-brand penetration and get costs under control next half, there's a case for a recovery, but right now it looks like institutional money is still heading for the exits.

Dis-Chem's been getting hammered but the fundamentals aren't that broken. Margins took a hit from load-shedding costs and stiffer competition from online, but the store network is still solid and footfall's picking up post-Covid. At 29.85 it's not screaming value yet but nowhere near a write-off either, depends if you can stomach the next two years while they sort out their cost structure.