Clicks The right medicine
Interim results out from Clicks last week, in some blessedly non-COVID news. Turnover was up +9.9% to R16.9bn for the six months through March, with headline earnings, a sound measure of profitability, up +13.1% to R851.2m. Store numbers were up by 17 to a pleasing haul of 721. Health and beauty sales were up +9.6%, while wholesale outfit UPD grew sales +12.3%, buoyed no doubt by Clicks’ continued advance into pharmacy – they added another 27 for the period, for a total of 572, bumping its market share of the retail pharmacy market up a touch to 24.6%. “Competitive pricing, differentiated product ranges, the Clicks ClubCard and new stores were the main drivers of growth,” said CEO Mr Ramsunder, quietly getting on with the business of business. Like other businesses before it, Clicks have said they’ll be holding onto the dividend until things settle a bit, and anticipate tougher trading conditions post-lockdown. For our snappy summary, click here.
Comment: What’s the limit for Clicks, stores-wise? They’ve got their eye on 900.