Clicks Plans To Open More Stores And Pharmacies Across Sa

Source: www.clicksgroup.co.za

Clicks Group has reported a 13.2% increase in diluted headline earnings per share for the six months to February 2025, driven by market share gains in core health and beauty categories, stronger private label performance and improved margins.

Group turnover increased by 6.2% to R23.2bn, with retail turnover up 6.4% and distribution turnover growing by 7.6%. The group’s trading margin expanded by 60 basis points to 9.1%.

The interim dividend was increased by 13.3% to 238 cents per share.

Chief executive Bertina Engelbrecht said the group’s performance in the weak consumer environment continued to demonstrate the resilience and defensive nature of its core product offering.

“Clicks reported strong growth in the front shop health and pharmacy categories, with private label product sales increasing by 10.1% and now making up 31.4% of front shop sales in Clicks. Online sales grew by 23.0%, contributing 4.4% of total retail sales,” she said.

Expanding national footprint

Clicks opened its 950th store in February and expanded its national pharmacy footprint to 740 locations. Currently 53% of South Africa’s population live within 5kms of a Clicks pharmacy, highlighting the convenience of the pharmacy chain.

Clicks plans to open 45 to 55 stores and pharmacies during the full year and remains committed to its medium-term target of 1,200 stores.

Clicks Clubcard

The iconic Clicks ClubCard loyalty programme grew its active membership to 12.1 million, gaining over one million new members in the past year. ClubCard members accounted for 82% of Clicks sales and received R438m in cashback rewards over the six months.

The group’s pharmaceutical wholesaler, UPD, continued its recovery following the large-scale systems implementation across its distribution centres in the past two years, delivering good growth in both turnover and trading profit.

As part of its commitment to carbon neutrality, UPD launched South Africa’s first fleet of zero-emission, pharma-compliant electric delivery vehicles. The 42 vehicles, equipped with solar-powered refrigeration, currently serve customers across Gauteng and the Western Cape.

Looking ahead to the second half of the financial year, Engelbrecht said the trading environment will remain constrained, with consumer spending likely to be impacted by the VAT rate increase. “Ongoing global uncertainty and geopolitical risks could adversely affect the country’s macroeconomic outlook,” she said.

Capital investment of R1.025bn is planned for the full year, with 56% allocated to the opening of new stores and pharmacies, as well as store refurbishments.

“We remain confident in the group’s competitive advantage and market-leading positions in the health and beauty sectors, as well as the long-term organic growth opportunities in Clicks. We are forecasting an increase of 11% to 16% in diluted HEPS for the 2025 financial year,” Engelbrecht added.