Shares in Clicks, a leading pharmaceutical retailer, surged over 3% on Thursday following a strong profit report and a dividend increase of more than 14%. For the year ending August 31, diluted headline earnings rose by 14.3%, resulting in a new dividend of 776 cents per share.
Clicks experienced robust turnover growth of 9.2%, reaching R45.4 billion, driven by gains across its health and beauty segments. Notably, the company reported an 11.7% increase in retail turnover, aided by effective price management.
The company expanded its store footprint, adding 51 new locations and growing its pharmacy network to 720. However, pharmacy openings fell short of targets due to regulatory challenges related to its medicine manufacturing business. Despite this, Clicks remains committed to opening 40 to 50 new pharmacies and aims for a total of 1,200 stores in the medium term. Analysts praised Clicks for its consistent performance, strong return on equity, and potential for continued growth in a recovering consumer environment.