Dis-Chem’s CEO, Ivan Saltzman, has revealed that the company has lost R5.21 billion in value since his memo leaked, which banned the hiring or promoting of white employees. In addition, many regular customers withdrew their prescriptions from the company after the news was made public as reported by the Daily Investor.
While an analysis of customer data showed that the company gained black chronic medication customers, the number of clients lost exceeded those gained.
The moratorium’s impact on white employees was revealed as part of Dis-Chem’s trading update from 1 September 2022 to 5 February 2023, which showed a significant decrease in revenue growth, the lowest level since Dis-Chem was listed in 2016.
Dis-Chem’s share price has fallen by 18.1%, translating to a market cap destruction of R5.21 billion since the news was released on 13 October. Daily Investor tracked the performance of R100 invested into Dis-Chem and Clicks from 13 October to assess the impact of the “no-whites” letter on Dis-Chem’s share price.
Photo: Facebook / @Dis-Chem Pharmacies