Dis-Chem reports 8% revenue growth as Better Rewards fuels sales while tech spending doubles
Revenue rose 8% to R23 billion, but earnings per share fell 12.8% as the retailer doubled investment in its X, bigly labs innovation unit.
By Felo News Desk · Published
Dis-Chem said its Group revenue grew 8% to R23 billion for the six months ended 31 August 2026, while earnings per share dropped 12.8% to 64.3 cents, according to its interim results released on Thursday.
What happened
The retailer attributed the revenue lift to its Better Rewards loyalty programme, which has delivered R1.5 billion in instant value to customers since its launch in October 2025. Active membership rose 27% to 8.2 million, with 760 000 reactivated and 980 000 new members, and members accounted for 86.1% of total sales. Front‑shop volume grew 5.5% versus a 0.1% market‑wide increase, based on NielsenIQ data for the 52 weeks to 27 September 2026. Pharmacy revenue rose 10.4%.
At the same time, Dis-Chem doubled spending on its X, bigly labs innovation unit, which it describes as the “innovation engine behind Dis‑Chem’s transformation”. Expenses rose 13.1% year‑on‑year, outpacing a 9% rise in total income. Operating profit fell 10.5% to R1 billion and the interim dividend was cut 12.9% to 25.62 cents.
What the reports add
Bizcommunity highlighted the loyalty programme’s impact, noting the expansion of participating brands from 140 to 200, representing 45% of front‑shop sales, and the programme’s role in offsetting temporary price deflation across 45% of those sales. TechCentral focused on the technology spend, reporting that the cost of X, bigly labs doubled over the comparable period, though the exact amount in rand was not disclosed. It also referenced the prior year’s R130 million investment in the integrated healthcare ecosystem, of which about R78 million went to X, bigly labs.
What was said
CEO Rui Morais told Bizcommunity, “Our revenue growth, market share gains and improved retail total income margin highlight the sustainability of the Better Rewards programme. It supports business growth while offering customers value at the till, as they remain constrained by the current economic climate.”
Dis‑Chem’s interim results statement, cited by TechCentral, said the company expects measurable returns from the innovation investments in FY 2027 as Better Rewards matures, the new app launches and X, bigly labs’ capabilities are progressively rolled out.
How it came about
The Better Rewards programme was launched in October 2025 to strengthen customer loyalty amid a constrained economy. Since then, membership has surged, driving a larger share of sales. Parallel to the loyalty push, Dis‑Chem has been building an integrated healthcare ecosystem, investing R130 million in the year to August 2025, with a significant portion allocated to its X, bigly labs unit. The latest interim results show the company is now scaling that investment, doubling spend on the unit while seeking to translate the loyalty‑driven revenue boost into higher profitability in future periods.
Key facts
- Group revenue grew 8% to R23 billion for the six months ended 31 August 2026. (bizcommunity.com)
- Headline earnings per share fell 12.8% to 64.3 cents. (bizcommunity.com)
- Active Better Rewards membership rose 27% to 8.2 million. (bizcommunity.com)
- Dis‑Chem doubled spending on its X, bigly labs innovation unit. (techcentral.co.za)
- Operating profit declined 10.5% to R1 billion. (techcentral.co.za)
- Interim dividend was cut 12.9% to 25.62 cents. (techcentral.co.za)
Timeline
- 2025-10-01 — Launch of Better Rewards loyalty programme.
- 2025-08-31 — Dis‑Chem reported R130 million investment in integrated healthcare ecosystem, with R78 million to X, bigly labs.
- 2026-08-31 — Six‑month interim results showing 8% revenue growth and doubled tech spending.
