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Competitive pricing sees Clicks Group health and beauty sales jump by nearly 10%
Clicks Group reports a 13.7% growth in diluted headline earnings per share to 754 cents. Earnings per share increased by 11.4% to 751 cents with headline earnings per share increasing by 11.7% to 754 cents.
The retail-led healthcare group saw turnover grow by 9.6% to R34.4 billion, with profit after tax growing by 11.8%. After paying R822 million in dividends to shareholders and R653 million in share buybacks, cash balance was R2.2 billion.
For the period ended 31 August, Clicks reports a further 8.4% increase in retail health and beauty sales. The company says competitive pricing, differentiated products and new stores contributed to this growth in sales.
Additionally, strong online sales and the Clicks ClubCard which grew membership to 8.6 million were contributors of growth. Online sales in Clicks increased by 361% off a relatively low base for the second half of the financial year, according to the company.
Vikesh Ramsunder, Group CE says the group delivered a strong performance amid a global pandemic and weak economic environment locally.
“This performance amid a global pandemic demonstrates the resilience of the business model of the group’s core health and beauty markets.”
Clicks Group has 884 stores with a total weighted trading area measuring 370 353m2. The group opened 39 stores and 40 pharmacies during the financial period
Retail expenses grow by 6.5%, with the group investing R591 million mainly in new stores and pharmacies, store refurbishments, supply chain and information technology.
UPD grew 11.2% and continued to gain market share after securing new wholesale and bulk distribution contracts.
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