Clicks Group H1’25 revenue up 6.2%

Pharmacy group Clicks has announced an increase of more than 13 per cent in its interim dividend after reporting robust margin and earnings growth, highlighted by a gain in market share in the beauty and health categories. Clicks CEO, Bertina Engelbrecht, joined CNBC Africa to discuss the company's exceptional performance and future prospects. Engelbrecht described the first half of the financial year as 'incredible,' citing factors such as improved consumer confidence, stable currency, and lower inflation. Despite subsequent challenges, Clicks remained focused, leading to positive outcomes. The company's defensive operating categories, a large base of club card customers, and a successful private label program have also contributed to its success. Clicks' private label program, which has been in operation for over 15 years, has seen significant growth and customer acceptance. Products like Clicks Sun Protect and Clicks Made for Baby have become market leaders, showcasing the brand's ability to build quality products at scale. In terms of general merchandise, Clicks aims to improve its competitive positioning, product assortment, and in-store merchandising to drive growth. The company plans to open 45 to 55 new pharmacies in the 2025 financial year, with positive engagement with the Department of Health and the Pharmacy Council. Clicks has already opened 29 new pharmacies and expects to exceed its targets. Despite a challenging consumer environment, Clicks remains confident in its ability to deliver strong earnings growth of between 11 to 16 per cent for the financial year. The company's resilience, defensive market categories, and loyal customer base are key factors underpinning this confidence. Clicks continues to focus on providing value to customers through promotions, club card rewards, and its private label offerings. With a history of exceptional performance in the face of adversity, Clicks is well-positioned for sustained growth and market leadership in the future.