Clicks Opens More Stores Across South Africa After R1.4 Billion Profit Surge

Clicks is doubling down on its expansion strategy in South Africa after reporting a solid jump in profits and growing consumer demand across its health and beauty stores.

In its interim financial results for the six months ending 28 February 2025, Clicks reported a 12.9% increase in headline earnings—reaching R1.44 billion. The group’s retail turnover rose by 6.4% to R23.2 billion, driven by resilient demand, growing ClubCard usage, and the success of its private-label products.

Store Expansion in Full Swing

As part of its national growth plan, Clicks opened its 950th store in February and now operates 740 pharmacies. In just six months, the group added 29 new pharmacies, with plans to open 45 to 55 more stores and pharmacies by the end of the 2025 financial year. Clicks is still eyeing its medium-term target of 1,200 stores.

ClubCard Loyalty Pays Off

A major contributor to Clicks’ retail strength has been the rapid expansion of its ClubCard loyalty programme, which now boasts 12.1 million active members. In the past year alone, over 1 million new members joined, and R438 million in cashback was distributed. ClubCard members accounted for a whopping 81.6% of Clicks’ total sales.

UPD Goes Green with Electric Fleet

On the pharmaceutical distribution side, United Pharmaceutical Distributors (UPD) recovered strongly from prior system disruptions, delivering solid turnover and trading profit growth.

In a notable move towards sustainability, UPD launched South Africa’s first fleet of zero-emission, pharma-compliant electric delivery vehicles. These 42 solar-powered, refrigerated trucks now operate across Gauteng and the Western Cape, supporting more efficient and greener deliveries.

Financial Performance at a Glance

• Group turnover: R24.8 billion (+6.6%)

• Headline earnings: R1.44 billion (+12.9%)

• Diluted HEPS: 603.9 cents (+13.2%)

• Retail turnover (excluding Unicorn): +8.3%

• Distribution turnover: +7.6%

• Total income: R7.2 billion (+8.9%)

• Retail margin growth: +50 basis points

• Trading profit: R2.1 billion (+12.6%)

• Capital expenditure: R222 million

The company also announced a higher interim dividend of 238 cents per share, up from 210 cents previously.

Outlook: Strategic Investments and Economic Headwinds

Despite its stellar performance, Clicks cautioned that the second half of the year may be tougher. A VAT increase to 15.5% from May 2025, along with global geopolitical tensions, could dampen consumer spending.

Still, Clicks plans to invest R1 billion in capital expenditure, with R578 million allocated for new stores and refurbishments and R447 million towards IT, infrastructure, and supply chain upgrades. The group also repurchased 1.1 million shares, valued at R372 million, as a show of confidence in its long-term strategy.

Clicks’ strong financial showing, aggressive expansion, and focus on private-label growth and tech-driven logistics demonstrate why the brand remains a retail powerhouse in South Africa. While challenges lie ahead, the group appears well-positioned to weather the storm and deliver long-term value for shareholders and customers alike.

{Source: BusinessTech}

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