Clicks Group (CLS) H2 2024 earnings summary

Executive summary

• Diluted HEPS rose 14.3% year-over-year to 1,193.5 cps, reflecting strong operational performance.

• Group turnover increased 9.2% to R45.4bn, with retail turnover up 11.7%.

• Store network reached 936 stores and 720 pharmacies; the Unicorn licensing matter was resolved in August 2024, enabling renewed pharmacy expansion.

• Market share advanced across core categories, supported by value, private label and loyalty programs.

Financial highlights

• Group trading margin rose to 9.2% from 8.7%; total income margin increased to 30.2% from 29.2%.

• Retail trading profit increased 14.8% and distribution trading profit rose 17.6%.

• Total dividend increased 14.3% to 776 cps; R2.5bn was returned to shareholders through dividends and buybacks.

• Cash generated by operations was R6.0bn; return on equity increased to 46.4% from 43.6%.

• Group turnover was R45.4bn; retail turnover rose 11.7%, while UPD managed turnover declined 6.7%.

Outlook and guidance

• Consumer conditions expected to improve with lower inflation, interest rates and fuel costs.

• Plan to open 40–50 stores and pharmacies annually, targeting 1,200 stores over the medium term.

• R1bn annual capex planned, with investment focused on store expansion, systems and infrastructure.

• Confident in delivering on increased medium-term trading margin targets.