Clicks reports double digit half-year profits

Pharmacy chain group Clicks has reported double digit growth in revenue and profit for the six months ended February 2022. The headline earnings from continuing operations have surged by 18% to over one billion rands. Clicks' CEO, Bertina Engelbrecht, joined CNBC Africa to discuss the company's performance in detail. Engelbrecht highlighted the various factors that contributed to the impressive results, including significant market share gains across different product categories. She mentioned that in the pharmacy category, which is core to their business, Clicks saw a 40 basis points increase in market share, excluding vaccinations, along with gains in financial categories like personal care and facial skincare.Engelbrecht attributed the success to Clicks' strategic focus on value. She emphasized the importance of meeting customer needs in an economically constrained environment by maintaining price competitiveness against national retailers, enhancing their click club card program, and offering a wide range of private label products. The CEO also mentioned that communication and marketing strategies played a crucial role in increasing club card membership, which now stands at 9.5 million members and accounts for 80.5% of sales.In terms of retail expansion, Clicks has accelerated its store and pharmacy rollout program, increasing the store foot count by 17 in the first half of the year. They plan to open 45 new stores and 54 new pharmacies in the current financial year, underscoring their belief in the resilience of their business model.Engelbrecht discussed the company's pharmacy expansion strategy, which includes a mix of organic growth and acquisitions. Clicks recently acquired 25 Pick n Pay pharmacies, with plans to transfer licenses to existing Clicks pharmacies and open new doors where opportunities arise. The CEO highlighted Clicks' commitment to supporting the national COVID-19 vaccination program, despite lower margins from vaccine administration, as part of their corporate responsibility and contribution to the country's recovery.Engelbrecht also shared her experience as the first female Black CEO of Clicks, expressing gratitude for the support she has received from business women across the country. She emphasized that her success is a collective achievement of every employee in the company, reflecting the company's strong teamwork and shared vision for growth and sustainability.