Clicks says private-label products boosted interim earnings
By Nick Hedley - Apr 17th, 09:59
Clicks Group says it grew headline earnings by 12.9% to R763.3m in the six months to February thanks in part to better sales of its private-label products and higher profits from its distribution business.
“Clicks Group delivered another strong health and beauty sales performance ... in an environment of low inflation, subdued economic growth and constrained consumer spending,” it said.
Retail health and beauty sales grew 8.5%, while UPD, the group’s pharmaceutical distributor, grew operating profit by 27.2% as it gained market share, Clicks said.
“The retail margin expanded owing to more customers switching to Clicks private-label products and the positive mix impact from the stronger growth of front shop relative to pharmacy,” it said.
The group raised its interim dividend 15.1% to 118c a share.
It said group turnover rose 6.2% to R15.3bn as retail sales grew 7.7%, or by 4.5% in comparable stores, with selling price inflation of just 1%. Distribution turnover increased 5.1% with price deflation of 0.2%.
While Eskom’s power cuts were weighing on consumer confidence and trading, Clicks said its brands “are well positioned to increase market share”.
It planned to accelerate its store expansion programme by opening 41 new stores in the financial year to end-August 2019, versus the previous target of 25 to 30 stores.
Meanwhile, the UPD business had won two new bulk distribution contracts which would start late in the second half of the financial year.
Clicks said it planned to invest R437m in the second half to build its store and pharmacy network and its support infrastructure.
The group said diluted headline earnings per share for the full financial year ending August 2019 would probably increase by between 10% and 15% versus the prior year.
The trading environment would remain constrained in the second half, particularly if power cuts continued, while retail selling price inflation was expected to average low single-digit levels for the full year.Business Live
Ackermans launches ‘Moms4Moms’ educational platform to give mothers a helping hand
16/09/2019 - 14:03
According to a 2017 Statistic South Africa report, 61% of South African children are raised by only their mothers. This reveals that the majority of South African women have to navigate single-parenthood, as well as being the sole provider for their families.
Rhodes Food Group's turnover rises amid healthy international growth
16/09/2019 - 11:14
The international turnover of Rhodes Food Group, which makes Bull Brand corned meat and Bisto gravies, rose 13.4% in the 10 months to end-July, boosted by a weaker rand and exports of fruit snacks to the US.
The changing UX and CX landscape
13/09/2019 - 16:16
An exceptional customer experience (CX) builds a foundation of loyalty and trust. Similarly, a positive user experience (UX) encourages brand connections with people wanting to come back for more. And yet, local organisations must learn to embrace these more effectively to differentiate themselves from their competitors.
The role of the stokvel in the organisation
13/09/2019 - 10:14
South Africans are well-known for their participation in stokvel saving schemes where members contribute a fixed monthly amount that is paid out to a specific member on a specified date. Nicol Myburgh, Head of the HR Business Unit at CRS Technologies, says employers can integrate these payments into existing processes to make it safer and more convenient for those members.
Improving your restaurant's ambience with these 5 tips
13/09/2019 - 09:44
Owning a restaurant is much more than ensuring that your guests are well-fed. It is about the experience you offer your customers. For instance, have you ever been to a restaurant where everything is just right? And by everything, we mean the decor, lighting, food, and music. This is the first impression you should aim to achieve as a restaurant owner.