Clicks Group reports strong 14.1% earnings growth despite tough South African economy

SOUTH AFRICA— South Africa’s largest pharmacy chain, Clicks Group, has delivered a robust trading performance for the year ending 31 August 2025.

Despite facing a tight consumer market, the company managed to grow earnings, improve margins, and provide industry-leading returns to its shareholders. 

The health and beauty retailer posted a 14.1% rise in diluted headline earnings per share, reaching 1,362 cents.

Group turnover increased by 5.3% to R47.8 billion, which is approximately USD 2.8 billion. Retail turnover grew by 6%, while distribution turnover rose by 5.1%.

 A significant achievement was the expansion of the group’s trading margin, which climbed 60 basis points to 9.8%.

Clicks also achieved an impressive return on equity of 49.2%, reflecting strong financial management.

The company’s board approved a total dividend of 886 cents per share, representing a 14.2% increase from the previous year and maintaining a 65% payout ratio.

Clicks returned R2.7 billion (about USD 160 million) to shareholders through R1.9 billion (USD 111 million) in dividends and R751 million (USD 44 million) in share buybacks.

Over the past decade, Clicks has achieved a compound annual growth rate in total shareholder return of 17.3%.

CEO Bertina Engelbrecht credited the group’s strong results to the resilience of its core health and beauty products and growth across its strategic areas.

The company reported 10.7% growth in private-label and exclusive brands, which now make up R9.7 billion (around USD 570 million) of total turnover.

She noted that one in every three front-shop products sold is a private-label or exclusive item.

The Clicks ClubCard loyalty program marked its 30th anniversary, increasing active membership to 12.6 million and accounting for 82.6% of sales.

Members received R855 million (USD 50 million) in cashback rewards during the year, underlining the program’s success.

The group expanded its market share in the baby care segment, with standalone stores increasing sales by 23% and store-in-store sales rising by 12%.

Additionally, Clicks expanded its physical presence by opening 55 net new stores, bringing its total to over 990 outlets.

The pharmacy network expanded with 60 new pharmacies, bringing the total to 780 nationwide.

Notably, over half of South Africa’s population now lives within 5 kilometers of a Clicks pharmacy, showcasing the group’s widespread reach.

In line with its sustainability efforts, the group’s wholesaler, UPD, introduced South Africa’s first fleet of 42 zero-emission electric delivery vehicles equipped with solar-powered refrigeration units. Plans are underway to add another 40 vehicles.

 Looking ahead, Engelbrecht acknowledged ongoing pressure on consumer spending but emphasized Clicks Group’s strong market position.

The company plans to focus on increasing private-label sales, aiming for 35% of front-shop sales.

It will also build on recent investments in Sorbet and UniCare, enhance omni-channel retail capabilities, and open 40 to 50 new Clicks stores and pharmacies in the 2026 financial year.

Capital expenditure for the new year is budgeted at R1.3 billion, roughly USD 76 million.

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