By Reuters Staff

       2 Min Read

       A Dis-Chem logo is seen amid a nationwide coronavirus disease (COVID-19) lockdown, at a pharmacy in Midrand, South Africa, January 18, 2021. REUTERS/Siphiwe Sibeko

       (Reuters) - South Africa’s Dis-Chem Pharmacies reported a rise in annual profit on Monday, buoyed by acquisitions of new drugstores and stronger demand for medicines as COVID-19 lockdowns ease.

       The drugstore chain said the acquisitions of dozens of locations during the year ended Feb. 28, and its recent launch of a health insurance offering have helped the group broaden its focus.

       “In the two months since launching medical insurance, uptake has exceeded our initial expectations,” Dis-Chem said in a statement, although it warned the consumer environment remained “constrained.”

       Dis-Chem, which runs the second-largest chain of pharmacies in South Africa in competition with Clicks Group, said it administered 1.4 million COVID-19 vaccine doses during the year, resulting in 513 million rand ($32.5 million) in revenue.

       Total revenue climbed 15.7% to 30.4 billion rand. Headline earnings per share, a key metric of profit for South African companies, jumped 27.6% to 99.2 cents for the year.

       ($1 = 15.7828 rand)

       Reporting by Muhammed Husain in Bengaluru; Editing by Subhranshu Sahu

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