Clicks counts 11.8 million ClubCard members

Clicks has seen a jump in profits, with the group now counting almost 12 million active clients on its Clicks ClubCard loyalty programme.

In its financial results for the year ended 31 August 2024, the group said that it continues to demonstrate the resilience of its business model and the defensiveness of its core product offerings as diluted headline earnings per share increased by 14.3% to 1,193.5 cents.

The group said the higher earnings were due to supported margin expansion, strong cash flow generation and shareholder return metrics.

The group also noted that it continued to gain market share in all core health and beauty product categories.

The group noted that the Clicks ClubCard loyalty programme has also grown to 11.8 million active members.

The group also increased its store base by a net 51 stores to 936, while its pharmacy network also saw a net nine new pharmacies, taking the total to 720.

“While the number of pharmacy openings was below the targeted range due to the Unicorn licensing matter, this was successfully resolved with the Department of Health late in the financial year,” said the group.

“Post the year-end, pharmacy licences are again being issued, which is positive for Clicks’ expansion programme.”

Amid the rise in earnings, the group’s total dividend was increased by 14.3% to 776 cents per share, with R2.5 billion given to shareholders via R1.7 billion in dividend payments and share buybacks worth R835 million.

The group’s market capitalisation increased by 34.9% to R89 billion at year-end. Over the past 10 years, the group has delivered a total shareholder return of 20.7% compound annual growth rate.

The group’s total turnover increased by 9.2% to R45.4 billion, while the total income also grew by 12.8% to R13.7 billion.

Retail turnover increased by 11.7% during the period, including Clicks, GNC, The Body Shop, and Sorbet corporate stores.

“Retail costs increased by 12.5% due to pressure from higher insurance costs, new stores, depreciation on capital expenditure and higher performance-based incentive payments. Acquisitions concluded in the prior year added 2.0% to retail cost growth,” said the group.

“Group trading profit increased by 15.1% to R4.2 billion while the group’s trading margin increased by 50 basis points to 9.2%.”

“The retail trading margin expanded by 20 basis points to 10.2% due to the stronger growth in higher margin product categories together with efficient cost management.”

Amid the rise in earnings, the group’s total dividend was increased by 14.3% to 776 cents per share, with R2.5 billion given to shareholders via R1.7 billion in dividend payments and share buybacks worth R835 million.

The group’s market capitalisation increased by 34.9% to R89 billion at year-end. Over the past 10 years, the group has delivered a total shareholder return of 20.7% compound annual growth rate.

The group’s financials can be found below:

Outlook

“While consumer spending is expected to remain constrained in the short- term, the medium-term outlook for the consumer environment is increasingly positive,” said the group.

“Lower inflation, interest rate relief and declining fuel costs, together with the stronger Rand and the extended suspension of load shedding in the country, are positive for consumer sentiment and should ultimately support increased spending.”

Clicks plans to open 40-50 new stores and 40-50 pharmacies for the 2025 financial year and remains committed to its medium-term target of 1,200 stores.

The group plans to invest over R1 billion in the 2025 financial year, including R578 million in new stores and pharmacies and refurbishing 70-80 stores.

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