Clicks opened its 1 000th store, increasing the store footprint to 1 003 by the end of February 28, 2026.
Image: Simphiwe Mbokazi/Independent Newspapers
Clicks Group increased diluted headline earnings per share (HEPS) by 8.1% for the six months to February 2026 in an environment of intensified competition and constrained consumer spending, particularly among middle-income households.
The share price fell relatively strongly by 5.6% to R283.96 on Thursday afternoon, bringing the decline to around 24% as the price trended lower over 12 months. The interim dividend was increased by 8.4% to 258 cents per share.
But the group directors have forecast HEPS to grow between 4% and 9% for the full financial year relative to 2025, based on a continuing constrained consumer environment and if geopolitical factors affect South Africa’s growth and macroeconomic outlook.
Group turnover in the interim period increased by 7.4% to R24.9 billion. Retail turnover increased by 5.4%, while distribution turnover grew by 13%, mainly driven by a 31.1% increase in revenue from preferred bulk supplier contracts.
The group remained highly cash generative, with cash inflows at R1.9bn. During the half year, R2.3bn was returned to shareholders in dividend payments of R1.5bn and share buybacks of R752 million.
Chief executive Bertina Engelbrecht said it was a resilient performance in the first half, with pharmacy sales increasing 8.6% and retail pharmacy market share strengthening to 24.9% from 24.2%.
She said retail turnover was impacted by delays in implementing a warehouse management system at the distribution centre in Cape Town, which reduced product availability, particularly over the festive season.
The retail margin expanded by 70 basis points mainly due to private label volume growth. The distribution margin fell by 50 basis points, impacted by the lower adjustment to the single exit price of medicine relative to the prior year and the loss of two bulk distribution contracts. The group total income margin fell by 30 basis points to 30.7%.
Retail costs grew by 6.1%, with employment costs higher due to a 7% annual wage increase and expenses relating to the warehouse management system implementation.
“Clicks reached a significant milestone with the opening of its 1,000th store, increasing the store footprint to 1,003. The national pharmacy network was expanded to 795 at the end of February, with 53.6% of households now living within 5 kilometres of a Clicks pharmacy,” she said.
Another highlight was the opening of its 800th pharmacy in Oudtshoorn last week.
The Clicks ClubCard grew active membership by 800,000 to 12,9 million, with cardholders contributing 83,7% of sales in Clicks. Loyalty members received R527m in cashback rewards.
UPD, the group pharmaceutical wholesaler, saw strong growth in wholesale and preferred supplier bulk distribution turnover.
“The business continued to demonstrate disciplined cost management, supported by lower electricity and fuel costs following its early investment in solar energy, battery storage, and electric delivery vehicles.” UPD doubled its fleet of zero-emission, pharma-compliant electric delivery vehicles to 85, with 86% of wholesale deliveries and 74% of travel no longer exposed to fuel costs.
Engelbrecht said the consumer environment is expected to remain under significant pressure in the second half as rising fuel prices and associated inflationary pressures constrain household spending.
Clicks plans to open 40 – 50 new stores and 40 – 50 new pharmacies in the 2026 financial year. In addition, 10 differentiated concept stores would be piloted in the second half. Capital expenditure of R1.3bn was planned for the 2026 financial year, with 53% of the investment allocated to the opening of new stores and pharmacies as well as store refurbishments.
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