Clicks reports increase in earnings, eyes new store openings
Clicks has reported a 9.5 per cent rise in diluted headline earnings per share, year-on-year, for the six months ended February. At the end of the period, the retailer held cash of R1.1 billion. The group also returned R1.7 billion to shareholders in dividends and share buy-backs. Clicks CEO, Vikesh Ramsunder joins CNBC Africa for more.
Thu, 22 Apr 2021 16:21:13 GMT
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AI Generated Summary
- Clicks reports a 9.5% increase in diluted headline earnings per share, showcasing resilience in the face of ongoing pandemic challenges.
- The company plans to open around 40 new stores in convenience shopping centers, capitalizing on evolving consumer behaviors.
- Clicks offers to support the national vaccination program through its pharmacy network, potentially boosting earnings and positioning for future growth.
Clicks, a leading retail health and beauty group, has reported a 9.5% rise in diluted headline earnings per share for the six months ended February. The retailer maintained a strong cash position of R1.1 billion at the end of the period, showcasing resilience in the face of the ongoing challenges posed by the COVID-19 pandemic. Clicks CEO, Vikesh Ramsunder, expressed confidence in the group's ability to weather the storm and capitalize on emerging opportunities as the economy reopens. In a recent interview with CNBC Africa, Ramsunder discussed the company's performance, strategies to improve margins, and plans for expanding its store footprint amidst evolving consumer behaviors. Looking ahead, Clicks aims to open around 40 new stores, primarily focusing on convenience shopping centers. The company sees potential in smaller neighborhood malls, where foot traffic is expected to increase as people shop closer to home. Ramsunder also highlighted Clicks' role in the national vaccination program, offering to partner with the government to administer vaccines through its network of pharmacies. While the vaccination initiative is not factored into the company's earnings guidance, Ramsunder acknowledged the potential upside it could provide if implemented successfully. Despite lingering risks from economic uncertainties and consumer pressures, Clicks remains optimistic about its outlook, emphasizing its track record of adapting to volatile market conditions. The company's defensive business model and essential product offerings position it well to navigate the challenges ahead. As the vaccination program gains momentum, Clicks anticipates a positive impact on consumer confidence and spending, driving further growth and profitability in the coming months.