Clicks interim results February 2018
Revenue for the interim period increased by 10.4% to R15.2 billion (2017: R13.8 billion) and gross profit was up 10.1% to R3.1 billion (2017: R2.8 billion). Profit for the period rose to 16.4% to R678.6 million (2017: R582.8 million). Furthermore, headline earnings per share was 15.6% higher at 285.5 cents per share (2017: 247 cents per share).
The board of directors has approved an interim gross ordinary dividend for the period ended 28 February 2018 of 102.5 cents per share (2017: 88.0 cents per share). The source of the dividend will be from distributable reserves and it will be paid in cash.
Consumer confidence appears to be improving but it is too early for this to translate into increased disposable income. Consumer spending is therefore expected to remain constrained for the balance of the group's financial year.
However, Clicks is anticipated to continue its growth momentum and will be opening 40 new stores this year, well ahead of the target of 25 to 30 stores.
UPD aims to mitigate the impact of the lower single exit price (SEP) increase through continued tight cost control and the benefit of four new distribution contracts starting in the second half.
The core health and beauty markets in which the business operates are resilient and the group's market-leading brands are well positioned to increase market share in the current environment.