Clicks H1 HEPS up 13%

South Africa's largest pharmaceutical retailer, Clicks Group, is making significant strides in the retail sector despite the challenging economic environment. The company has announced that it expects full-year earnings to increase by 10% to 15% and plans to open between 50 and 55 new stores in the 2024 financial year. Clicks currently operates 902 stores and remains committed to its long-term goal of reaching 1200 stores. Bertina Engelbrecht, CEO of Clicks Group, attributes the company's success to a combination of factors including being a value retailer, having a strong record of disciplined delivery, and leveraging its Clubcard loyalty program. With over 11 million loyalty members, Clicks has valuable insight into the South African consumer market. Engelbrecht emphasizes that despite economic constraints, Clicks has flourished by focusing on its private label program, offering a range of products from entry-level to premium, and running successful promotional campaigns. The company's dedication to service and strategic location planning has also contributed to its growth. Clicks has managed to increase its market share in the health and beauty segment, driving sales and profit margins higher. Additionally, investments in renewable energy have positioned Clicks as a sustainable and environmentally conscious business. The company's commitment to sustainability has also resulted in cost savings and operational efficiency. Looking ahead to the upcoming national elections in South Africa, Engelbrecht remains confident in Clicks' long-term plans, stating that the company's broad appeal and product range cater to customers across all market segments. While political changes may impact healthcare policies such as the National Health Insurance (NHI) program, Clicks sees potential opportunities to expand its services and benefit from increased healthcare access. Overall, Clicks Group's resilience and strategic initiatives continue to drive its success in the competitive retail landscape.