Clicks’ group retail sales, including from the Clicks store chain, The Body Shop, and Sorbet corporate stores, increased by 8.7%. Picture: Sibusiso Ndlovu/Independent Newspapers
Clicks Group’s share price slipped 2.8% after it reported an 8.1% rise in turnover for the 20 weeks to January 12.
The health, beauty, and pharmacy retail group lifted turnover 8.1% to R18.2 billion in the 20 weeks, driven by front shop health and pharmacy sales, and the group was granted 27 new retail pharmacy licences in the period, CEO Bertina Engelbrecht said on Tuesday.
The 8.1% turnover growth was hardly different from the 8% reported for the same period a year before. The share price was trading at R361.63 Tuesday afternoon, 19.2% higher than it was a year ago.
Rival pharmaceuticals group, DisChem, had lifted revenue 9.6% in the six months to August 31, 2024 over the previous year.
Data from Statistics South Africa showed the country’s overall retail sales increased by 6.3% over a year in October 2024, marking eight consecutive months of growth in retail activity that was likely boosted by lower interest rates, two-pot pension payouts and lower fuel prices.
Clicks’ group retail sales, including from the Clicks store chain, The Body Shop, and Sorbet corporate stores, increased by 8.7%.
Turnover from Unicorn Pharmaceuticals, which was sold by the group from August 1, 2024, was excluded from the current and prior periods to ensure comparability of results reporting.
This disposal had no impact on the turnover of the group or distribution segment, a trading update said Tuesday.
Comparable store sales increased 5.9% (8.4%), with selling price inflation averaging 3.5% (7.5%) and volume growth of 2.4% (0.9%).
Engelbrecht said sales were also driven by higher sales of private label products and increased promotional sales. The group also benefited from a record Black Friday.
This translated into market share gains across all product categories in Clicks in the first quarter of the financial year, she said.
Slower growth in non-promotional sales and softer performances in Christmas gifting, paperware, and home and electrical products were reported relative to the prior period.
The Unicorn Pharmaceuticals licensing matter was resolved in August 2024, and pharmacy licences were again being issued by the Department of Health, with Clicks being granted 27 new licences to date.
Clicks opened 11 new pharmacies in November and December and plans to accelerate the expansion programme in the months ahead, said Engelbrecht. As of August 2024, Clicks operated 715 pharmacies.
UPD continued to gain momentum following a large-scale systems implementation early in the prior period, and its wholesale turnover increased by 9.5% (-0.8%).
UPD’s total managed turnover, combining wholesale and bulk distribution, increased 3.6% relative to a decline of 6.3% in the prior period. The results are expected to be released on or about April 16.
BUSINESS REPORT