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Trading Update for 20 Weeks to 13 January 2019
Clicks Group Limited
(Incorporated in the Republic of South Africa)
Registration number: 1996/000645/06
JSE share code: CLS
ISIN: ZAE000134854
CUSIP: 18682W205
TRADING UPDATE FOR 20 WEEKS TO 13 JANUARY 2019
Retail health and beauty sales, including Clicks and the franchise brands of The
Body Shop, GNC and Claire’s, increased by 8.6% in the 20 weeks to 13 January
2019 (“the period”), driven by competitive pricing and value promotions in the
deteriorating consumer spending environment.
Health and beauty sales in comparable stores increased by 5.1% and showed
strong volume growth of 4.3% as selling price inflation averaged only 0.8% for
the period.
Total group retail sales increased by 7.8% and by 4.5% in comparable stores,
with selling price inflation of 1.1%.
UPD’s total managed turnover, including wholesale turnover and the turnover
managed on behalf of bulk distribution clients, increased by 16.2%.
Clicks Group chief executive Vikesh Ramsunder said the performance over the
period confirmed once again the resilience of the Clicks brand and its appeal to
cash-strapped South Africans. “Our promotional strategy, centred around the
brand’s well-known “3 for 2” offers, together with our great everyday pricing,
ensured that we maintained our sales momentum and sustained volume growth
despite the increasing pressures on consumer disposable income.”
“Retail selling price inflation slowed in line with our expectations to around 1%
while UPD experienced deflation of 0.4% over this period. In this low inflationary
environment which is constraining revenue growth, UPD benefited from gaining
four new distribution contracts between April and October 2018. We also expect
some relief in the second half of the financial year from the increase in the single
exit price (SEP) of medicine of 3.78% for 2019.”
“The current pressure on consumer disposable income is unlikely to improve in
the months ahead. However, our core health and beauty markets and business
model are resilient, and we are confident in our ability to trade effectively through
these difficult market conditions,” said Ramsunder.
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 2019 will be
released on SENS on or about 17 April 2019.
Cape Town
22 January 2019
For further information contact
Tier 1 Investor Relations
Tel: +27 (21) 702 3102
Sponsor
Investec Bank Limited
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