Clicks Group (CLS) H1 2025 earnings summary

Executive summary

• Diluted headline earnings per share increased 13.2% year-over-year, with strong cash generation of R1.7 billion in six months and resilience in a challenging environment.

• Group turnover rose 6.2% to R23.2 billion, retail turnover up 6.4%, and UPD/distribution turnover up 7.6%.

• Opened the 950th Clicks store and 740th pharmacy, with ClubCard membership reaching 12.1 million and contributing over 81% of retail turnover.

• UPD recovered from prior system issues and launched South Africa's first pharma-compliant electric vehicle fleet.

• Achieved level 3 B-BBEE rating.

Financial highlights

• Group trading margin improved by 60 basis points to 9.1% due to retail growth and UPD recovery.

• Diluted HEPS increased to 604 cents per share, up 13.2% year-over-year.

• Group trading profit increased by 12.6% to R2.1 billion.

• Return on equity rose to 46.2%.

• Interim dividend increased by 13.3% to 238 cents per share.

Outlook and guidance

• Full-year diluted HEPS forecast to rise 11–16%, with plans to open 45–55 new Clicks stores and pharmacies.

• Consumer environment expected to remain constrained due to VAT increase and geopolitical risks.

• Capital investment of R1.025 billion planned for FY2025, including R578 million for new stores and refurbishments.

• Share buybacks to be opportunistically executed; 1.1 million shares (R372 million) repurchased post period-end.