Latest news with #KarenSandison
IOL News
a day ago
- Business
- IOL News
Dis-Chem clarifies job security amidst declining retail staffing costs
JSE-listed pharmacy group Dis-Chem has insisted that it has not cut any jobs Image: Karen Sandison, Independent Newspapers JSE-listed pharmacy group Dis-Chem has insisted that it has not cut any jobs, despite its latest financial results showing a slight decline in retail staff costs. The group posted solid results for the year ending February 2025, with revenue rising 8% to R39.2 billion and headline earnings per share increasing by 20%. While the reduction in employee costs sparked questions about possible layoffs, the group told IOL these savings were not the result of job cuts. "There are no job reductions, no role consolidations and no reduced working hours – using existing staff across more stores," the group said. Dis-Chem explained that the cost containment measures under its Staffing Framework 1.0 focused on improving operational efficiency by adjusting staff ratios. This included increasing the number of post-basic qualified (PBQ) employees who handle administrative tasks, enabling pharmacists to focus on clinical duties. "The main drivers of cost containment of framework 1.0 were related to the following: Ratio change in our pharmacy category – this resulted in the addition of more resources to improve our dispensary service, driven by a ratio change between our pharmacists and our post-basic qualified resources (who are at a lower price point). "This allows the PBQs to process the administrative requirements of capturing the script and for pharmacists to practice at the top of their scope, checking the dispense and engaging with patients. "Redistribution of over-invested front shop staff – as a result of historical, decentralised decision–making–has led to many administrative resources being over-invested in certain stores. These resources (which were considered against a framework) were then moved into our new stores". Looking ahead, the group added that it plans to introduce Staffing Framework 2.0, which includes adding a junior management level in new stores to reduce management costs. "The introduction of a junior management level for our new stores, which reduces the management cost per store. Cost-saving mechanisms are not traditional job cuts. "Prioritisation implies that we are ensuring that all services and products that we make available in our ecosystem are reimagined and delivered to our employee base with 'extra value', allowing them to understand the products and services and be ambassadors for the change in our brand positioning". [email protected] IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
a day ago
- Business
- IOL News
Dis-Chem clarifies job security amidst declining retail staffing costs
JSE-listed pharmacy group Dis-Chem has insisted that it has not cut any jobs Image: Karen Sandison, Independent Newspapers JSE-listed pharmacy group Dis-Chem has insisted that it has not cut any jobs, despite its latest financial results showing a slight decline in retail staff costs. The group posted solid results for the year ending February 2025, with revenue rising 8% to R39.2 billion and headline earnings per share increasing by 20%. While the reduction in employee costs sparked questions about possible layoffs, the group told IOL these savings were not the result of job cuts. "There are no job reductions, no role consolidations and no reduced working hours – using existing staff across more stores," the group said. Dis-Chem explained that the cost containment measures under its Staffing Framework 1.0 focused on improving operational efficiency by adjusting staff ratios. This included increasing the number of post-basic qualified (PBQ) employees who handle administrative tasks, enabling pharmacists to focus on clinical duties. "The main drivers of cost containment of framework 1.0 were related to the following: Ratio change in our pharmacy category – this resulted in the addition of more resources to improve our dispensary service, driven by a ratio change between our pharmacists and our post-basic qualified resources (who are at a lower price point). "This allows the PBQs to process the administrative requirements of capturing the script and for pharmacists to practice at the top of their scope, checking the dispense and engaging with patients. "Redistribution of over-invested front shop staff – as a result of historical, decentralised decision–making–has led to many administrative resources being over-invested in certain stores. These resources (which were considered against a framework) were then moved into our new stores". Looking ahead, the group added that it plans to introduce Staffing Framework 2.0, which includes adding a junior management level in new stores to reduce management costs. "The introduction of a junior management level for our new stores, which reduces the management cost per store. Cost-saving mechanisms are not traditional job cuts. "Prioritisation implies that we are ensuring that all services and products that we make available in our ecosystem are reimagined and delivered to our employee base with 'extra value', allowing them to understand the products and services and be ambassadors for the change in our brand positioning". [email protected] IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
2 days ago
- Business
- IOL News
Buy now or miss out: Johannesburg property market heats up
As interest rates decline, Johannesburg's property market is heating up, presenting a golden opportunity for buyers and investors. Don't get left behind—find out why experts are urging immediate action! Image: Karen Sandison / Independent Newspapers In a decisive move that could reshape the real estate landscape in Johannesburg, the South African Reserve Bank has cut interest rates by 25 basis points, bringing the home loan interest rate to an unprecedented low of 10.75%—the most favourable level since February 2023. This announcement has sparked urgent calls from property experts for prospective buyers and investors to act swiftly in this buoyant market. Denese Zaslansky, CEO of FIRZT Realty Group, emphasised the growing momentum in property demand since rates began to decline in September last year. 'We have witnessed a remarkable 38% surge in sales and an average price increase of 6% over the past six months,' she noted, pointing out that desirable locations in Johannesburg are already seeing diminishing stock levels. The implications of today's rate cut are significant for both first-time buyers and seasoned investors. Given that the current average home price in the city is approximately R1.6 million, qualifying for a home loan currently requires a gross monthly income of about R54,200. This figure is R3,600 less than it was this time last year, offering a golden opportunity for many who may have previously felt locked out of the market. Zaslansky warns, however, that time is of the essence. 'If property prices rise by just 5% in the next year, prospective buyers will face higher monthly bond repayments and will need to increase their monthly income by R2,700 to qualify for a home loan, should interest rates remain stable. This will erode the advantages gained from the recent rate cuts,' she cautioned. Today's interest rate decline comes in response to inflation metrics consistently lingering below the Reserve Bank's target range of 3% to 6%. With inflation reported at 2.8% in April, and economic growth failing to gain real traction, the decision reflects a broader shift aimed at boosting consumer confidence and justifying spending amid turbulent market conditions. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading According to Zaslansky, a turnaround is imminent. 'We are highly optimistic that we will see rapid advancements in the property market as demand escalates. The number of new developments sprouting across Johannesburg is a clear indicator of rising investment in property, stimulating both job creation and overall economic growth in the region.' With the property market in Johannesburg offering rare opportunities for savvy buyers, Zaslansky's message is clear: the time to act is now. Ignoring this window may mean relinquishing the chance to secure a home at today's favourable rates and prices—an opportunity that may not last long as the market continues to evolve. BUSINESS REPORT
IOL News
2 days ago
- Politics
- IOL News
Most South African farmers are black: why Trump got it so wrong
There are more black farmers in South Africa than white farmers,says the authors Image: Karen Sandison/ Independent Newspapers When world leaders engage, the assumption is always that they engage on issues based on verified facts, which their administrative staff are supposed to prepare. Under this assumption, we thought the meeting at the White House on 21 May between South Africa's president, Cyril Ramaphosa, and US president Donald Trump would follow this pattern. Disappointingly, the televised meeting was horrifying to watch as it was based on misrepresenting the reality of life in South Africa. Issues of agriculture, farming and land (and rural crime) were central to the discussions. What is clear to us as agricultural economists is that the skewed views expressed by Trump about these issues originate in South Africa. This includes Trump's statement: 'But Blacks are not farmers.' In our work as agricultural economists, we have, in many pieces and books (our latest titled The Uncomfortable Truth about South Africa's Agriculture), tried to present South Africans with the real facts about the political economy policy reforms and structural dimensions of South African agriculture. Writing on these matters was necessary given that official data – agricultural census 2017, as well as the official land audit of 2017 – all provide an incomplete picture of the real state and structure of South African agriculture. The reason is that the agricultural census, which is supposed to provide a comprehensive and inclusive assessment of the size and structure of the primary agricultural sector, and the land audit, which was supposed to record the ownership of all land in South Africa, are incomplete in their coverage. The incomplete and inaccurate official data provides fertile ground for radical statements by the left and the right – and novices on social media. This is why South Africa has to deal with falsehoods coming from the US. These include Trump's statement that black people are not farmers in South Africa. South Africa is to blame for providing inaccurate data to feed these false narratives. The facts presented here should allow a more nuanced interpretation of South Africa's farm structure. Firstly, there are more black farmers in South Africa than white farmers. And not all white commercial farm operations are 'large-scale', and not all black farmers are 'small-scale', 'subsistence' or 'emerging'. Most farm operations can be classified as micro, or small in scale. This is important so that one doesn't view South Africa's agriculture as mainly white farmers. Indeed, we are a country of two agricultures with black farmers mainly at small scale and accounting for roughly 10% of the commercial agricultural output. Still, this doesn't mean they are not active in the sector. They mainly still require support to expand and increase output, but they are active. The facts In the wake of the circus in the Oval Office, we were amazed by the total silence of the many farmers' organisations in South Africa. We have not seen one coming out to reject all of Trump's claims. The only thing we can deduce from this is that these falsehoods suit the political position of some farmer organisations. But at what cost? Will many of their members be harmed by trade sanctions or tariffs against South Africa? The US is an important market for South Africa's agriculture, accounting for 4% of the $13.7 billion (R247bn) exports in 2024. When Ramaphosa highlighted the fact that crime, and rural crime in particular, has an impact on all South Africans and that more black people than white people are being killed, Trump's response was disturbing, to say the least: 'But Blacks are not farmers'. This requires an immediate fact check. We returned to the text from our chapter in the Handbook on the South African Economy we jointly prepared in 2021. In the extract below, we discuss the real numbers of farmers in South Africa and try to provide a sensible racial classification of farmers to denounce Trump's silly statement. As highlighted earlier, the two latest agricultural censuses (2007 and 2017) are incomplete as they restricted the sample frame to farm businesses registered to pay value added tax. Only firms with a turnover of R1 million qualify for VAT registration. We were able to expand the findings from the censuses with numbers from the 2011 population census and the 2016 community survey to better understand the total number of commercial farming units in South Africa. The Community Survey 2016 is a large-scale survey that happened between Censuses 2011 and 2021. The main objective was to provide population and household statistics at municipal level to government and the private sector, to support planning and decision-making. Data from the 2011 population census (extracted from three agricultural questions included in the census) shows that 2 879 638 households out of South Africa's total population, or 19.9% of all households, were active in agriculture for subsistence or commercial purposes. Only 2% of these active households reported an annual income derived from agriculture above R307 000. This translates into 57 592 households that can be considered commercial farmers, with agriculture as the main or only source of household income. This corresponds in some way with the 40 122 farming businesses that are registered for VAT as noted in the 2017 agricultural census report. If we use the numbers from the agricultural census it is evident almost 90% of all VAT-registered commercial farming businesses could be classified as micro or small-scale enterprises. If the farm businesses excluded from the census are accounted for under the assumption that they are too small for VAT registration, then the fact still stands that the vast majority of all farm enterprises in South Africa are small family farms. Graphic Image: Source: StatsSA There are, however, 2 610 large farms (with turnover exceeding R22.5 million, which are responsible for 67% of farm income and employed more than half the agricultural labour force of 757 000 farm workers in 2017. Graphic Image: Source: StatsSA (2020b) – based on additional analysis of the 2016 Community Survey Another way to get to farm numbers is to use the 2016 Community Survey. Using the shares as shown in Table 2, we estimate there are 242 221 commercial farming households in South Africa, of which only 43 891 (18%) are white commercial farmers. (This is very much in line with the VAT registered farmers but also acknowledging the fact that many white farm businesses are not necessarily registered for VAT.) Let's consider only the agricultural households with agriculture as their main source of income, surveyed in the 2016 community survey. We end up with a total of 132 700 households, of whom 93 000 (70%) are black farmers. This reality is something that policy makers and farm organisations find very difficult to deal with and it seems that Trump also found this too good to be true. We have tried here in a long winded way to deal with farm numbers and how to get to a race classification of farmers in South Africa. In the end we trust that we have managed to show that there are more black farmers in South Africa than white farmers. Their share in total output is smaller than that of their white counterparts. The National Agricultural Marketing Council puts black farmers' share of agricultural production as roughly 10%. But these numbers are also incomplete and largely an undercount. It will always be challenging to get to the real number of black farmers' share of agricultural output as nobody would ever know whether the potato or the cabbage on the shelf came from a farm owned by a black farmer or a white person but operated by a black farmer, for example. As South Africans know, the labour on farms, in pack houses, distribution systems and retail are all black. So, the sweat and hard work of black South African workers are integral to the food supply chain in South Africa. Let's get these facts straight and promote them honestly. The Conversation Image: Supplied
IOL News
4 days ago
- Business
- IOL News
Dis-Chem Pharmacies reports strong annual earnings growth, but share price falls on the JSE
Dis-Chem directors said they continue to make progress on eight strategic areas aimed at delivering sustainable shareholder value. They said the biggest contributor to earnings growth in the year to February 28, 2025, was better cost management, particularly payroll cost. Image: Karen Sandison, Independent Newspapers Dis-chem Pharmacies' share price slumped 5.5% on Friday despite reporting good annual earnings growth and solid revenue growth for the first quarter to May 27. Group revenue grew by 8.6% for the three months of the new financial year compared with the same time last year, while retail revenue was up 7.8%, supported by the opening of 9 pharmacy stores, with comparable pharmacy store revenue growth at 4.6%, the group said in a statement Friday. It plans to open a further 39 stores this year. Revenue increased 8% to R39.2 billion in the 12 months to February 29, 2025, while headline earnings a share (HEPS) was up 20% to 137.5 cents. The final dividend was raised 23.8% to 27.85 cents, bringing the payout for the year 19.9% higher to 54.83 cents. Dis-Chem's share price traded at R33.91 on Friday, barely changed from R31.28 a year ago. In contrast, for comparison, competitor Clicks Group's share price at R389.62 was 32% higher over 12 months. Dis-Chem directors said they continue to make 'solid progress' on the eight strategic areas aimed at delivering sustainable shareholder value. They said the biggest contributor to earnings growth in the year was better cost management, particularly payroll cost. Excluding a once-off property gain associated with the acquisition of the Midrand warehouse, HEPS increased 12.3% to 128.7 cents a share. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Retail revenue grew by 5.9% to R33.6bn, with comparable pharmacy store revenue growth at 4.1%. Net store changes in the past year included opening 20 and closing 3 retail pharmacy stores, and the closure of a net nine baby stores, resulting in a footprint of 285 retail pharmacy stores and 45 retail baby stores. Wholesale revenue grew 9.9% to R30.1bn. Wholesale revenue to own retail stores, the biggest contributor, grew 7.4% while external revenue to independent pharmacies and The Local Choice (TLC) franchises grew by 22.1%. Independent pharmacy growth was 22.7% attributable to both new customers and increased support from the current base. A R650m loan taken out in the year was used to acquire the Midrand warehouse property, while a R502m facility taken out in the prior period funded the acquisition of the Longmeadow warehouse property. Wholesale expenses grew 11.1%, mainly due to the acquisition of the Longmeadow warehouse in the prior period. Excluding the additional costs incurred for the Longmeadow warehouse, wholesale expenses grew by 9%.
