Clicks Group has delivered another strong set of results for the financial year ending 31 August 2025, growing profit and widening margins despite ongoing strain on South African consumers.

The health and beauty retailer reported a 14.1% rise in diluted headline earnings per share to 1,362 cents, while group turnover climbed 5.3% to R47.8 billion. Retail sales increased 6%, and the distribution business grew 5.1% year-on-year.

A standout figure was the group’s trading margin, which expanded by 60 basis points to 9.8%, reflecting improved efficiency across its operations. Return on equity reached an impressive 49.2%.

To reward shareholders, the board declared a total dividend of 886 cents per share, a 14.2% increase on last year, maintaining a payout ratio of 65%. The company returned R2.7 billion to shareholders through R1.9 billion in dividends and R751 million in share buybacks, with total shareholder returns averaging 17.3% annually over the past decade.

Private label strength drives growth

Chief executive Bertina Engelbrecht said the strong performance reflected the ongoing resilience of Clicks’ core health and beauty categories, supported by the success of its private label and exclusive brand strategy.

Sales of these brands surged 10.7% to R9.7 billion, and now make up one in every three products sold in the chain’s front shop.

The retailer’s ClubCard loyalty programme, which marked its 30th anniversary, continued to deliver exceptional engagement. Active membership rose to 12.6 million, accounting for 82.6% of total sales, with members receiving R855 million in cashback rewards over the year.

Clicks also deepened its presence in the baby products segment, where standalone stores lifted sales by 23%, and store-in-store formats grew 12%.

Expansion and sustainability milestones

The retailer added a net 55 new stores, taking its total to just over 990 outlets, and opened a net 60 pharmacies, bringing its national pharmacy network to 780 locations. More than half of South Africans now live within five kilometres of a Clicks pharmacy, the group noted.

On the sustainability front, UPD, the group’s wholesale arm, rolled out South Africa’s first fleet of 42 fully electric delivery vehicles, all equipped with solar-powered refrigeration systems. Another 40 electric vehicles are planned for deployment soon.

Outlook

Engelbrecht said that while consumers remain financially stretched, Clicks is well-positioned for continued growth thanks to its defensive market position and strong brand loyalty.

For the 2026 financial year, the group plans to:

Increase the contribution of private label products to 35% of front shop sales,

Capitalise on recent investments in Sorbet and UniCare,

Enhance its omni-channel retail capabilities, and

Open 40 to 50 new stores and an equal number of pharmacies.

Capital expenditure of R1.3 billion has been earmarked for the year ahead to support these initiatives.

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