Clicks posts 14.3% rise in annual profit

South African pharmacy chain Clicks Group on Thursday, 24 October 2024, reported 14.3% growth in full-year profit, at the upper end of its forecast range, driven by strong margins and cash flow generation.

Source: Reuters/Siphiwe Sibeko

It said it expected customer spending to remain constrained, but hoped for improvement citing "lower inflation, interest rate relief, declining fuel costs, a stronger rand and the extended suspension of load shedding," a reference to improved power supplies.

Clicks said its diluted headline earnings per share (HEPS), a key profit measure in South Africa, grew to 1,193.5 cents in the year ended Aug.31.

Its trading margins were up by 9.2% and it generated R6bn from operations, the statement said.

Group turnover grew by 9.2% to R45.4bn, with retail turnover, which includes Clicks, The Body Shop, Sorbet and GNC brands, increasing by 11.7%.

The group was further boosted by the completion of the large-scale systems implementation at its main distribution centre, which led to growth of 3.3% for its bulk and wholesale division, United Pharmaceutical Distributors (UPD).

It declared a final dividend of 556 cents, up from 494 cents in 2023.