Clicks full-year turnover up 8.2%

Health and beauty retailer Kliks reported a strong annual revenue growth of 8.2 per cent, with headline earnings up 0.8 per cent. The CEO, Bertina Engelbrecht, attributed this performance to market share growth in key product categories. In a recent interview with CNBC Africa, Engelbrecht shared insights into the company's strategies and future plans. Engelbrecht highlighted that the company focused on the basics and leveraged data from their extensive club card base of 10.4 million customers to understand and personalize offerings. She noted that consumers value sustainability and quality, leading to the success of Kliqs branded products like the award-winning CLIQs made for baby dry protect diaper. During the COVID-19 pandemic, there was increased demand for skincare and vitamins, influencing market share gains in these categories. Additionally, the company destigmatized adult incontinence products, leading to a significant growth of 22.8% in this segment. Kliks also addressed challenges faced by distribution partners, including the implementation of SAP ERP and warehouse management systems, resulting in a turnaround and a 3.5% increase in turnover. Inflation posed difficulties, but the company managed to achieve growth by focusing on retail sales, excluding vaccine impacts, which showed a 12.2% increase. Looking ahead, Kliks aims for growth across all market segments and geographies, prioritizing the housing market due to its high concentration of medical aid members. The company plans to open 40 to 50 new stores, building on its success of opening 51 new stores in the past year. Kliks recently made acquisitions aligned with its focus on health and beauty, including Solbay, a professional selling business with 194 stores; MChem, a 24-hour pharmacy known for convenience in the Western Cape; and 180 Degrees, a pharmacy software IT company focusing on customer service experience improvement. These acquisitions are expected to contribute significantly to the company's revenue in the future. Engelbrecht also mentioned plans to return a portion of the company's balance sheet to shareholders and invest in capital programs. Overall, Kliks Group remains optimistic about its prospects for the upcoming year, fueled by strategic acquisitions and a focus on customer-centric offerings and expansion.