Clicks crosses R50bn in sales as it adds 41 stores and 60 pharmacies

Clicks Group has pushed annual turnover past R50 billion for the first time, closing the year to 31 August 2026 at R50.4 billion, up 5.4%, after adding a net 41 stores and 60 pharmacies to its footprint.

As Sunday World reported on 22 October, the JSE-listed healthcare and beauty retailer grew headline earnings 2.7% to R3.32 billion. Diluted headline earnings per share rose 4.4% to 1,421.7 cents, and the group lifted its total dividend by the same margin to R9.25 a share.

The top line was hard-won. Clicks said trading conditions stayed difficult through the year, with households under continued financial pressure and rivals discounting hard. Selling price inflation averaged just 1.5%, easing to 1.2% in the second half, which means most of the rand growth came from volume and new space rather than from price increases.

Retail sales, spanning Clicks, UniCare, The Body Shop, Sorbet and the new KwaMakhi convenience format, rose 4.2%, with comparable store sales up 1.8%. Retail trading profit climbed 9.9% and the retail trading margin improved to 11% from a normalised 10.8%. The group also said operational disruption from a delayed warehouse management system at its Cape Town distribution centre weighed on performance.

Pharmacy remains the engine of the expansion. Clicks lifted its share of the country’s pharmacy market to 24.7% from 24.1%, ending the period with 1,110 stores and 840 pharmacies. Four 24-hour UniCare pharmacies opened during the year.

The wholesale side was weaker. Turnover at UPD, the group’s pharmaceutical distributor, rose 9.2% on a 19.3% jump in preferred bulk distribution contracts, but trading profit there fell 10.4%. Clicks put that down to a smaller Single Exit Price adjustment and the loss of two distribution contracts, which pulled distribution margins down to 2.7% from 3.3%.

That mix held group trading profit to a 4.7% gain, at R4.9 billion, and nudged the group trading margin down to 9.7% from 9.8%. Cash generation held up: R6.3 billion from operations, with net working capital days improving from 34 to 33 despite higher inventory carried for new stores, new product launches, medical consumables and growing demand for GLP-1 products.

Capital expenditure rose 18.4% to R1.17 billion, mainly on new stores and pharmacies, refurbishments, supply chain infrastructure and IT systems. Clicks plans to spend R1.5 billion in the 2027 financial year.

On the acquisition front, UPD bought a medical consumables distributor during the year, and the group took a 74% stake in Mr First Aid Proprietary Limited for a net cash outlay of R13.3 million. After year-end it agreed to buy a further 35.3% of premium beauty retailer ARC Store, operated through Mistragystix Proprietary Limited, for R507 million, taking its holding to 61% subject to regulatory approval.

Chief executive officer Bertina Engelbrecht said the group would keep investing in growth platforms including Sorbet, ARC Store, UniCare, KwaMakhi, medical consumables and digital capabilities.

Employment costs came to R5.41 billion, up 2.4% from R5.28 billion. Permanent staff rose to 21,216 from 20,102, made up of 20,689 retail employees and 527 in distribution.