Skip to main content

Clicks expects up to 13% profit jump

| Retailer trading results

Pharmacy chain Clicks Group said on Thursday it expects its full-year earnings to be up 8% to 13% after reporting a 9.5% rise in half-year earnings, boosted by consumer demand for preventative medicine and new private hospital business.

Reuters | IOL

The forecast for diluted headline earnings per share (HEPS) for the year ending Aug. 31 does not take into account any trading restrictions which may be imposed in response to a possible third wave of COVID-19 infections in the months ahead, Clicks said.

It also does not consider any potential impact from the group's retail and distribution businesses' participation in the national COVID-19 vaccination programme.

"This forecast assumes that the current constrained trading environment will be sustained into the second half of the 2021 financial year and continue to be impacted by COVID-19," the company said.

In the six months to Feb. 28, diluted HEPS rose to 371 cents. Further gains were hampered by the impact of the closure of its Musica entertainment business.

HEPS is a measure of profit used for companies in South Africa.

Group turnover increased by 7.6% to 18.1 billion rand ($1.27 billion) as retail health and beauty sales grew by 7.2%, supported by strong front shop health sales growth of 24.7% as customers focused on wellness and immune boosting vitamins and supplements.

Customers working from home and wearing masks has meant lower demand for beauty products like makeup and fragrances and accessories, but skin care performed well, chief executive Vikesh Ramsunder said, as the constant wearing of masks introduced acne for some people.

Turnover was also boosted by its healthcare wholesaler and distributor, United Pharmaceutical Distributors (UPD), which grew turnover by 9% and continued to gain market share, driven by the robust growth in the hospital channel during the pandemic and by attracting new wholesale business.

UPD has bid for a tender to distribute and store COVID-19 vaccines under the country's second phase of the rollout, which is expected to start on May 17. Successful bidders are yet to be announced.

Related Articles

Spar’s IT system failure has cost the company R...

By: IOL News Local retailer Spar has been hit hard this financial year and said on Thursday that it will have to withhold a final dividend to save cash after a huge IT system failure this year.

Tough decisions made, sets the tone for a more ...

The SPAR Group lifted turnover 10.1% to R149.3 billion (2022: R135.6 billion) for the year ended 30 September 2023. This was largely driven off the back of strong performance from the Irish business which saw growth of 21.9% in ZAR terms. Souther...

Woolies’ online grocery sales surge

By: Myles Illidge – My Broadband Woolworth’s trading update for the 20 weeks ended 12 November 2023 has revealed that the increased penetration of its Woolies Dash food delivery service resulted in a significant increase in online sales.

Dis-Chem reports group revenue growth of 9.4% t...

In the six-month period ending 31 August 2023, Dis-Chem reported Group revenue growth of 9,4% to R17.9 billion over the corresponding half year period to 31 August 2022.

Clicks shares soar as it clocks in higher marke...

By Dieketseng Maleke - IOL Clicks’ share price surged 8% yesterday after it reported record market share gains and a hike in earnings.