Wrap Text
Reviewed Condensed Consolidated Annual Group Results for the year ended 31 August 2025 and Cash Dividend Declaration
Clicks Group Limited
(Incorporated in the Republic of South Africa)
Registration number: 1996/000645/06
JSE and A2X share code: CLS
ISIN: ZAE000134854
CUSIP: 18682W205
LEI: 378900E967958A677472
("Clicks Group", "the group" or "the company")
REVIEWED CONDENSED CONSOLIDATED ANNUAL GROUP RESULTS FOR THE YEAR
ENDED 31 AUGUST 2025 AND CASH DIVIDEND DECLARATION
- Group turnover up 5.3%
- Retail turnover up 6.0%
- Trading margin up 60 bps to 9.8%
- Diluted HEPS up 14.1%
- Total dividend up 14.2% to 886 cents per share
- R6.6 billion cash generated by operations
- R2.7 billion returned to shareholders
- Return on equity up to 49.2%
- Total shareholder return 17.3% CAGR over 10 years
Overview
Clicks Group once again demonstrated the resilience of its core product
offering in a constrained trading environment, delivering growth across
its strategic pillars of value, convenience, differentiation and
personalisation. The group increased diluted headline earnings per share
by 14.1% to 1 362 cents and achieved an industry-leading return on equity
of 49.2%.
Clicks reported strong growth of 10.7% in private label and exclusive
brands which accounted for R9.7 billion of the chain's turnover. Clicks
increased its store base to over 990 following the opening of a net 55
stores and the national pharmacy network was expanded to 780 with the
opening of a net 60 pharmacies during the year.
Clicks ClubCard, which celebrates its 30th anniversary this year, grew
active membership to 12.6 million and contributed 82.6% of sales in
Clicks. Loyalty members received R855 million in cashback in the past
year, bringing total rewards paid to customers over the past three
decades to R7.5 billion.
The group maintained its track record of shareholder wealth creation. The
total dividend was increased by 14.2% to 886 cents per share, based on a
65% payout ratio. The group returned R2.7 billion to shareholders in
dividend payments of R1.9 billion and share buybacks of R751 million.
Over the past decade, the group has delivered a compound annual growth
rate of 17.3% in total shareholder return.
Financial performance
Group turnover increased by 5.3% to R47.8 billion. Retail turnover, which
includes Clicks, UniCare, The Body Shop and Sorbet corporate stores,
increased by 6.0%.
Comparable store turnover grew by 4.7% (excluding the additional trading
day in the prior period) with inflation of 2.6% and volume growth of
2.1%.
Retail turnover increased by 7.0%, excluding Unicorn Pharmaceuticals
(Unicorn), which was disposed of in the previous financial year.
Distribution turnover grew by 5.1% through increased purchasing
compliance across UPD's core wholesale channels.
Total income grew by 8.4% to R14.9 billion. The retail margin expanded by
70 basis points due to strong growth in higher-margin private label
products and supply chain efficiencies. The distribution margin declined
by 10 basis points, impacted by the lower adjustment in the single exit
price of medicines relative to the prior year. The group's total income
margin expanded by 90 basis points to 31.1% as a result of the stronger
growth in Retail relative to Distribution.
Retail costs grew by 7.9% mainly due to higher wage increases and
increased pharmacy openings as well as higher utility and card acquiring
costs. Comparable retail costs grew by 5.0%. Distribution costs were very
well managed, with expense growth contained to 1.9%.
Group trading profit increased by 12.1% to R4.7 billion and the group's
trading margin increased by 60 basis points to 9.8%. The retail margin
increased from 10.2% to 10.5% and including the intragroup profit from
Unicorn, the margin expanded to 10.8%. UPD increased its trading margin
by 10 basis points to 3.3%.
Headline earnings grew by 13.7% to R3.2 billion. Basic earnings per share
increased by 14.5% to 1 363 cents and headline earnings per share
increased by 14.1% to 1 362 cents.
Inventory levels increased by 10.7% and group inventory days were four
days higher at 78 days. Retail inventory was impacted by a focus on
product availability to drive sales growth as well as new stores opened
in the last two months of the year. UPD inventory was higher due to
demand-driven buy-ins of GLP-1 product and increased Unicorn stock
levels. The group's net working capital days improved from 35 to 34 days.
Cash generated by operations totalled R6.6 billion. Capital expenditure
of R985 million (2024: R891 million) was invested mainly in new stores
and pharmacies, store refurbishments, supply chain and information
technology (IT).
At financial year-end, the group held cash resources of R3.3 billion,
with the final dividend totalling R1.5 billion to be paid to shareholders
in January 2026.
Outlook
While the improvement in South Africa's macroeconomic indicators is
encouraging for retail spending over the medium term, consumer sentiment
and discretionary spending remain under pressure. The group is, however,
well positioned in this environment due to its competitive advantage in
the defensive health and beauty sectors where it holds market-leading
shares in its core retail categories as well as in pharmaceutical
wholesale and distribution.
In the new financial year, management aims to leverage the recent
investments in Sorbet, UniCare and the LEAP pharmacy system while
continuing to invest in enhancing the group's omni-channel capability.
Clicks plans to open 40 – 50 stores and 40 – 50 pharmacies in the 2026
financial year and is committed to achieving its medium-term target of
1 200 stores. In addition, the group plans to open 10 – 15 UniCare
specialised pharmacies over the medium term.
Private label remains the primary driver of the group's differentiation
strategy. The group aims to sustain the strong recent growth momentum in
private label and exclusive brands, targeting a 35% contribution to front
shop sales in the medium term.
Capital expenditure of R1 256 million is planned for the 2026 financial
year. This includes R662 million for new stores and pharmacies and the
refurbishment of 70 – 80 stores. A further R594 million will be invested
in supply chain, IT and infrastructure.
Final dividend
The board of directors has approved a final gross ordinary dividend for
the period ended 31 August 2025 of 648.0 cents per share (2024: 566.0
cents per share). The source of the dividend will be from distributable
reserves and paid in cash.
Dividends Tax (DT) of 20% amounting to 129.6 cents per ordinary share
will be withheld in terms of the Income Tax Act. Ordinary shareholders
who are not exempt from DT will therefore receive a dividend of 518.4
cents net of DT.
The company has 234 898 662 ordinary shares. Its income tax reference
number is 9061/745/71/8.
Shareholders are advised of the following salient dates in respect of the
final dividend:
Last day to trade "cum" the dividend Tuesday, 20 January 2026
Shares trade "ex" the dividend Wednesday, 21 January 2026
Record date Friday, 23 January 2026
Payment to shareholders Monday, 26 January 2026
Share certificates may not be dematerialised or rematerialised between
Wednesday, 21 January 2026 and Friday, 23 January 2026, both days
inclusive.
Mfundiso Njeke Bertina Engelbrecht Gordon Traill
Chairman Chief executive officer Chief financial officer
Cape Town
23 October 2025
This short-form announcement is the responsibility of the Clicks Group
board of directors and is a summary of the information in the detailed
annual results announcement and does not contain full or complete
details.
The full announcement can be downloaded from
https://senspdf.jse.co.za/documents/2025/jse/isse/CLS/H22025.pdf
or on the group's website at www.clicksgroup.co.za. The announcement is
available for inspection, at no charge, at Clicks Group's registered
office during business hours for a period of 30 calendar days following
the date of this announcement. Any investment decision in relation to
Clicks Group's shares should be based on the full announcement.
Review report
KPMG Inc., the group's independent auditor, has reviewed the condensed
consolidated financial statements and has expressed an unmodified review
conclusion on the condensed consolidated financial statements. Their
review report is included in the full announcement and is available for
inspection at the company's registered office together with the condensed
consolidated financial statements identified in the auditor's report.
These condensed financial statements have been prepared under the
supervision of Gordon Traill CA, the chief financial officer of the
group.
Directors: MJN Njeke*# (Chairman), BD Engelbrecht (Chief executive
officer), RJD Inskip*, NNA Matyumza*, SS Ntsaluba*, PM Osiris (née
Moumakwa)*, KC Ramon*, GD Traill† (Chief financial officer)
* Independent non-executive
# Appointed chairman on 30 January 2025
† British
Registered office: Cnr Searle and Pontac Streets, Cape Town 8001
Transfer secretaries: Computershare Investor Services Proprietary Limited
Sponsor
Investec Bank Limited
Date: 23-10-2025 08:00:00
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