Clicks FY HEPS up 14.3%

The Clicks Group, under the leadership of CEO Bettina Engelbrecht, has reported impressive financial results, with headline earnings per share (HEPS) up by 14.3%. In a recent interview with CNBC Africa, Engelbrecht attributed the company's success to its unwavering focus on execution and customer loyalty. With a base of 11.8 million loyal Clubcard customers, Clicks Group saw these customers contributing over 81% of the total retail turnover and 87% of the pharmacy turnover. This strong customer loyalty has been a key driver in the company's margin expansion, with retail margins now ranging between 10% and 11%, and total group margins at 9% to 10%, positioning Clicks Group as a sector leader both locally and globally. Engelbrecht highlighted the company's strategic approach to margin revision, indicating confidence in achieving sustained growth over the coming years. In terms of costs, Clicks Group reported a 12.5% increase, with some lingering expenses from previous periods. However, innovative investments in renewable energy, such as solar power for electricity and battery storage, have helped offset rising costs. The company's focus on cost containment and efficiency, particularly in its UPD business, has yielded positive results, with expense growth kept lower than turnover growth. Additionally, Clicks Group's commitment to employee welfare and development was underscored by Engelbrecht's mention of above-minimum wage payments and comprehensive medical insurance coverage for all employees. Looking ahead, Engelbrecht expressed confidence in Clicks Group's ability to sustain its strong performance, citing positive trading trends in the first two months of the new financial year. The company remains committed to monitoring and optimizing margins across its business units, with a strategic focus on further enhancing operational efficiencies. Clicks Group's consistent track record of delivering shareholder value and nurturing a culture of employee ownership bodes well for its future prospects, as it continues to set new benchmarks in the retail and healthcare sectors. In conclusion, Bettina Engelbrecht's strategic leadership has steered Clicks Group towards another year of robust financial growth, driven by customer loyalty, margin expansion, and prudent cost management. The company's unwavering commitment to value creation for both customers and employees sets a compelling example in the competitive retail landscape. With a strong start to the new financial year and a clear roadmap for sustained success, Clicks Group remains well-positioned to continue its upward trajectory under Engelbrecht's guiding hand.