CLICKS GROUP LIMITED - Trading Update for 20 Weeks to 14 January 2018

Release Date: 22/01/2018 10:00
Code(s): CLS
 
Wrap Text
Trading Update for 20 Weeks to 14 January 2018

Clicks Group Limited
(Incorporated in the Republic of South Africa)
Registration number: 1996/000645/06
JSE share code: CLS
ISIN: ZAE000134854
CUSIP: 18682W205
(“Clicks Group” or “the group”)

TRADING UPDATE FOR 20 WEEKS TO 14 JANUARY 2018

-     Clicks sales up 14.2%
-     Clicks comparable store volume growth of 4.8%
-     Group turnover up 11.3%

The Clicks chain increased sales by 14.2% in the 20 weeks to 14 January 2018
(“the period”) as the brand continued to show its resilience in the current tight
consumer spending environment.

Clicks reported comparable store sales growth of 7.5% and showed real volume
growth of 4.8% as selling price inflation measured 2.7%.

Total group retail sales increased by 13.0% and by 6.7% on a comparable store
basis, with selling price inflation of 3.0%.

UPD, the group’s pharmaceutical wholesale and distribution business, increased
turnover by 11.6%, ahead of selling price inflation which averaged 6.2% for the
period.

Total group turnover for the period grew by 11.3% to R11.1 billion.

    Segmental turnover analysis
                                  Total sales   Inflation for the
                                  growth (%)         period (%)
    Retail                               13.0                 3.0
    Distribution                         11.6                 6.2
    Intragroup turnover                  20.5                   -
    Total group                          11.3                 4.2

Chief executive David Kneale said as a value retailer Clicks appeals to cash-
strapped consumers. “Sales continue to be driven by our strong promotional
offer, with the "3 for 2" promotion on Christmas gifting again proving highly
attractive. We are also encouraged by the incremental sales from our online
store over the festive season.”
“Inflation is expected to moderate further in the months ahead, particularly in
UPD which will be impacted by the recently announced SEP increase of only
1.26% for 2018.”

“While we are also not anticipating any easing of the financial pressure on
consumers, we remain confident in our ability to trade through these challenging
market conditions, as demonstrated by our recent performance,” said Kneale.

The financial information in this trading update has not been reviewed or reported
on by the group’s independent auditor.

Clicks Group’s interim results for the six months to 28 February 2018 will be
released on SENS on or about 19 April 2018.

Cape Town
22 January 2018

For further information contact
Tier 1 Investor Relations
Tel: +27 (21) 702 3102

Sponsor
Investec Bank Limited

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