Dis-Chem Loses R7 Billion in Market Cap After Saltzman Family Exits Leadership
- Dis-Chem's share price dropped from R38.19 to R30.00 following the Saltzman family's departure from the board
- The pharmacy retailer reported a 17.1% fall in basic earnings per share despite revenue climbing 9.3% to R42.8 billion
- Ivan Saltzman fully exited the board in July 2026, completing a multi-year withdrawal by the founding family
PAY ATTENTION: Mark Briefly News as a preferred source, and our content will appear higher in your Google feed!
Source: Getty Images
SOUTH AFRICA — Dis-Chem Pharmacies shed approximately R7 billion in market capitalisation after the Saltzman founding family completed its exit from the company's board, as financial results for the year ended 28 February 2026 revealed mounting cost pressures beneath headline revenue growth.
According to News Day, the pharmacy group's market cap stood at R32.8 billion on 27 May 2026, just ahead of its annual results release. The share price subsequently fell from R38.19 to R30.00 per share, pulling the market capitalisation down to R25.8 billion. Founder Ivan Saltzman, who stepped down as chief executive in 2023 and was succeeded by Rui Morais, resigned as executive director on 30 June 2026 before formally leaving the board as a non-executive director on 24 July 2026.
His departure follows a broader family withdrawal: Lynette Saltzman resigned as executive director in 2022, and Saul Saltzman resigned as executive director last year before leaving the board entirely this year. Executive director Stanley Goetsch also retired on 30 June 2026. Dan and Mark Saltzman, who inherited shares in 2025, sold R320 million worth of stock between January and February of this year.
Revenue grows but earnings fall
Dis-Chem reported revenue growth of 9.3% to R42.8 billion for the financial year, with its store footprint expanding to 316 retail pharmacy outlets and 42 baby stores. However, profitability came under strain. Basic earnings per share dropped 17.1% to 114.2 cents, while basic headline earnings per share fell 17.3% to 113.7 cents. The final dividend was cut by 42.8% to 15.92 cents per share, bringing the full-year dividend down by 17.3% to 45.34 cents.
PAY ATTENTION: You can now search for all your favourite news and topics on Briefly News.
Innovation spending weighs on costs
Total group expenses grew 13.0%, with retail expenses rising 15.7%, partly driven by new store openings and the company's ongoing innovation push. Dis-Chem invested R330 million in a new hub called Bigly Labs, which supported the launch of the Better Rewards loyalty programme and a new store model at Melrose Arch. Retail employment costs rose 10.3% over the period. Stripping out investment-related expenditure, group profit before tax increased by 20.1%, suggesting that core trading performance remained relatively resilient.
Dischem shareholder faces backlash for Palestine stance
In a related article, Briefly News reported on Dis-Chem's public distancing from controversial remarks made by major shareholder Mark Saltzman, following backlash from the South African community. Saltzman's misogynistic comments regarding journalist Redi Tlhabi have ignited calls for a boycott, raising questions about accountability in corporate governance and shareholder actions.
Source: Briefly News
