Clicks Group turnover increases 10% to R14.4bn

PHARMACY, health and beauty retailer Clicks Group yesterday reported a 10% increase in turnover to R14.4 billion in the six months to February 2018 as the retailer generated cash inflows from operations of over R1.1bn.

The group’s performance for the halfyear resulted in diluted headline earnings per share (HEPS) increasing by 14.8% to 266.3c, and the interim dividend was increased by 16.5% to 102.5c a share, up from 88c a share in 2017.

Clicks expanded its store footprint to 646 with the opening of 24 stores in the past six months while ClubCard active membership increased to 7.5 million as the loyalty programme attracted close to 950 000 new customers in the past year.

Chief executive David Kneale said that health and beauty sales rose 14.3%, which contributed to Clicks gaining market share in all product categories. Kneale said the growth was driven mainly by buoyant Christmas trading, appealing promotional offers and competitive pricing.

“The core health and beauty markets in which we operate are resilient and our market-leading brands are well positioned to increase market share in the current environment,” Kneale said.

“We expect Clicks to continue its growth momentum and the chain will be opening 40 new stores this year.”

Kneale said the group was investing over R700 million on new stores, pharmacies, store refurbishments, supply chain infrastructure and IT this year.

On the outlook for the second half, Kneale said consumer confidence appeared to be improving. Kneale said the group was forecasting to grow earnings by between 12% and 17% for the financial year to August 2018. – African News Agency (ANA)