Clicks posts 14.3% rise in annual profit

South Africa's biggest pharmacy chain Clicks Group on Thursday reported 14.3% growth in full-year profit, at the upper end of its forecast range, driven by strong margins and cash flow generation.

It said it expected customer spending to remain constrained but hoped for improvement, citing "lower inflation, interest rate relief, declining fuel costs, a stronger rand and the extended suspension of load shedding," a reference to improved power supplies.

Clicks said its diluted headline earnings per share (HEPS), a key profit measure in South Africa, grew to 1,193.5 cents in the year ended August 31.

Its trading margins were up by 9.2% and it generated R6 billion from operations, Thursday's statement said.

Group turnover grew by 9.2% to 45.4 billion rand, with retail turnover, which includes Clicks, The Body Shop, Sorbet and GNC brands, increasing by 11.7%.

The group was further boosted by the completion of the large-scale systems implementation at its main distribution centre, which led to growth of 3.3% for its bulk and wholesale division, United Pharmaceutical Distributors (UPD).

It declared a final dividend of 556 cents, up from 494 cents in 2023.