Clicks interim results February 2019

Turnover for the interim period increased 6.2% to R15.334 billion (2018: R14.433 billion), gross profit rose 8.2% to R3.364 billion (2018: R3.108 billion), operating profit climbed 11.3% to R1.044 billion (2018: R938.4 billion), profit for the period came in 13% higher at R763.7 million (2018: R675.8 million), while headline earnings per share grew 9.3% to 310.8 cents per share (2018: 284.4 cents per share).

The board of directors has approved an interim gross ordinary dividend for the period ended 28 February 2019 of 118.0 cents per share (2018: 102.5 cents per share). The source of the dividend will be from distributable reserves and it will be paid in cash.

Company outlook
Macroeconomic conditions are not anticipated to improve in the short to medium term and management expects the trading environment to remain challenging in the second half of the financial year. Electricity load shedding continues to have a negative impact on consumer confidence and trading.

However, the group's core health and beauty markets as well as the business model are resilient and the group's market-leading brands are well positioned to increase market share.

In this difficult environment Clicks plans to capitalise on opportunities to accelerate its store expansion programme by opening 41 new stores in the financial year, well ahead of the targeted 25 to 30 stores.

UPD has gained two new bulk distribution contracts which commence late in the second half and will also benefit from the slightly higher SEP increase granted for 2019.

Capital investment of R437 million is planned for the second half of the year, split across the store and pharmacy network, and group infrastructure to support the increased scale of the business.

2019-04-17 08:53:29