Hospital front shops help Clicks grow its footprint
By Robert Laing - Apr 21st, 09:35
Taking over the front shops in Netcare hospitals helped Clicks grow its flagship brand to 600 stores at the end of February, the retail group said in its interim results statement on Friday morning.
A net 89 Clicks stores were opened during the six months to end-February, of which 41 were front shops in Netcare hospitals. Its pharmacy network grew to 459, of which 59 were new pharmacies added during the reporting period.
Clicks has budgeted R577m capital investment for its 2017 financial year.
The Clicks group grew its overall interim income 11% to R13.5bn and aftertax profit 14.5% to R582.8m. A R2.32 per share interim dividend was declared, 15.8% higher than in the matching period.
The group’s retail health and beauty division, which includes Clicks and its The Body Shop, GNC and Claire’s franchises, increased sales by 13.1%. Excluding new stores, sales were up 8.4%.
Selling price inflation for the group was contained to 4.8%, Clicks said.
The results statement made no mention of the group’s CD and DVD retailer Musica.
Its pharmaceutical wholesaler UPD grew turnover by 9.6%. Clicks CEO David Kneale said this beat the average market growth of 5.6%, increasing UPD’s market share to 24.6%.
For the full financial year to end-August, Clicks forecasts its diluted headline earnings per share (HEPS) will grow between 11% and 16%.
Its diluted HEPS grew 13.5% to R2.32 during the first half of its financial year, matching its interim dividend.
"Consumer spending will continue to be constrained in the months ahead, with low economic growth, higher taxes and ongoing political turbulence weighing negatively on disposable income and consumer sentiment," Kneale said in his outlook.
"The health and beauty markets in which the group operates are relatively resilient and in the current environment management will focus on protecting income, controlling costs and managing cash efficiently."
© BusinessLIVE MMXVII
Clicks up there amongst the coolest
15/05/2017 - 16:29
Clicks has been named the coolest Specialist Health, Beauty & Accessory Store in the Sunday Times Generation Next Youth Survey, held at the Sandton Convention Centre last week. Second was Woolworths, followed by Avon, Dis-Chem and American Swiss.
Will rival clip Clicks’ wings?
01/02/2017 - 11:52
Growth of high-flying retailer and expansion by new listing Dis-Chem may saturate lucrative market
Clicks clears hurdle to run Netcare pharmacies
11/11/2016 - 09:41
Cape Town – The Competition Tribunal announced on Thursday that it has approved – with conditions – the merger between Clicks and Netcare’s in-hospital “front shops”.
Clicks's UK franchises show strong sales growth
27/10/2016 - 11:44
Clicks reported on Thursday that group revenue was up 9.6% to R25.5bn for the year to end-August.
Newsletter outrage over Netcare's Clicks pharmacy deal
04/07/2016 - 09:45
Cape Town - An employee union has criticised Netcare for what it deems a lack of consultation with its members after announcing plans for a long-term outsourcing deal with Clicks.