{"id":866173,"date":"2026-07-13T16:00:00","date_gmt":"2026-07-13T14:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=866173"},"modified":"2026-07-13T16:13:01","modified_gmt":"2026-07-13T14:13:01","slug":"clicks-lost-an-average-of-r135-million-in-value-every-day-in-2026-but-theres-a-silver-lining","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/wealth\/866173\/clicks-lost-an-average-of-r135-million-in-value-every-day-in-2026-but-theres-a-silver-lining\/","title":{"rendered":"Clicks lost R135 million in value every day in 2026 – but there’s a silver lining"},"content":{"rendered":"\n

The Clicks Group has faced a challenging 2026, but its dominance in South Africa’s retail space means it should not be written off just yet, especially given how attractive its share price is. <\/p>\n\n\n\n

Clicks is the nation’s largest retail pharmacy chain, with over 1,000 stores, with about 800 in-store pharmacies.<\/p>\n\n\n\n

Through its subsidiary, UPD, Clicks operates as the largest pharmaceutical wholesaler in South Africa and also owns The Body Shop and Sorbet in the country.<\/p>\n\n\n\n

However, the group has seen a massive decline in its share value following a disappointing set of interim results for the six months ended 28 February 2026.<\/p>\n\n\n\n

Clicks reported group turnover growth of 7.4% to R24.9 billion, and increased its interim dividend by 8.4% to 258 cents per share. <\/p>\n\n\n\n

Nevertheless, retail turnover growth was hit by delays in implementing a warehouse management system at its Cape Town distribution centre, impacting stores over the festive season.<\/p>\n\n\n\n

Supply issues at its Eastern Cape and Western Cape stores led to a reduction in retail turnover of an estimated R175 million.<\/p>\n\n\n\n

The group also focused on aggressive competitor discounting over the festive season, which put its margins under some strain.<\/p>\n\n\n\n

Most importantly for the group’s value, management’s guidance for earnings to be between 4% and 9% higher for the year was well below analyst expectations.<\/p>\n\n\n\n

Since the start of the year, the group’s share price has tumbled by 33.52% despite the group implementing a share buyback.<\/p>\n\n\n\n

The company’s market cap has declined from roughly R77.7 billion at the start of the year to R51.71 billion currently. This amounts to an average loss of circa R135 million in value<\/strong> every day<\/strong>.<\/p>\n\n\n\n

Analysts said the stock’s weak performance comes amid the belief that Clicks is no longer delivering the exceptional growth that once justified its premium valuation.<\/p>\n\n\n\n

Ricus Reeders, wealth manager at PSG Hole In One Ruimsig, previously said that the retailer\u2019s valuation is moving to a level where it should be. <\/p>\n\n\n\n

He said that the group had traded at a price-to-earnings ratio above 20 for a prolonged period, which made it relatively expensive for a local retailer.<\/p>\n\n\n\n

Reeders added that Clicks may be losing market share to major competitors, with Dis-Chem as its main competitor.<\/p>\n\n\n\n

Not down and out<\/h2>\n\n\n\n
\"\"<\/a><\/figure>\n\n\n\n

While Clicks has seen a dramatic decline in value, Aheesh Singh, Chief Investment Officer of MP9 Asset Management, is optimistic about the stock. <\/p>\n\n\n\n

Singh noted that Clicks has come off quite a high, down from over 30% in the last six months and 50% off its high, which was around R400 per share.<\/p>\n\n\n\n

He believes that the company is now trading at an attractive price, with its P\/E multiple back down to around 16 times.<\/p>\n\n\n\n

While the company has faced a challenging period, Singh noted that it has been around for a long time and remains a strong business.<\/p>\n\n\n\n

This includes 100% cash flow conversion and no debt on the balance sheet. 50% of South Africans also live within a 5km radius of a Clicks store.<\/p>\n\n\n\n

Clicks Financials<\/strong><\/td>Six months to 28 February 2026<\/strong><\/td>Six months to 28 February 2025<\/strong><\/td>% change<\/strong><\/td>Year to 31 August 2025<\/strong><\/td><\/tr><\/thead>
Turnover<\/strong><\/td>24 872 210<\/td>23 164 269<\/td>7.4%<\/td>47 828 079<\/td><\/tr>
Gross profit<\/strong><\/td>5 824 477<\/td>5 564 761<\/td>4.7%<\/td>11 399 653<\/td><\/tr>
Total income<\/strong><\/td>7 642 597<\/td>7 173 908<\/td>6.5%<\/td>14 860 861<\/td><\/tr>
Headline earnings<\/strong><\/td>1 529 631<\/td>1 437 775<\/td>6.4%<\/td>3 234 282<\/td><\/tr>
Net financing cost<\/strong><\/td>(162 748)<\/td>(122 811)<\/td>32.5%<\/td>(242 970)<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n
\n
\"\"<\/a>
Clicks Share Price<\/figcaption><\/figure><\/div>\n\n\n
\n","protected":false},"excerpt":{"rendered":"

The Clicks Group has seen a massive decline in its share price since the start of the year, which has brought it to an attractive level.<\/p>\n","protected":false},"author":95,"featured_media":856745,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2076668226361004245","_sma_x_attempts":1,"footnotes":""},"categories":[9880],"tags":[],"class_list":["post-866173","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/866173","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=866173"}],"version-history":[{"count":12,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/866173\/revisions"}],"predecessor-version":[{"id":866208,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/866173\/revisions\/866208"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/856745"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=866173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=866173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=866173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}