Clicks Group (CLS) H2 2025 earnings summary

Executive summary

• Delivered diluted headline EPS growth of 14.1% year-over-year, within guidance, and return on equity of 49.2%.

• Group turnover increased by 5.3%, with retail turnover up 6% and strong cash inflows of ZAR 6.6 billion.

• Opened net 55 Clicks stores and 60 pharmacies, reaching 990 stores and 780 pharmacies; Clubcard active members rose to 12.6 million, contributing 82.6% of sales.

• Maintained market share gains in core health, beauty, and baby categories despite subdued trading and inflation.

• Celebrated 30 years of ClubCard, confirmed as most used in South Africa.

Financial highlights

• Diluted headline EPS increased to ZAR 1,362.00, up 14.1% year-over-year.

• Dividend per share up 14.2% to ZAR 8.86, with a 65% payout ratio.

• Group trading margin rose 60 basis points to 9.8%; retail margin improved 30 basis points to 10.5%.

• Total income margin up 90 basis points, driven by private-label growth and supply chain efficiencies.

• Cash generated by operations was ZAR 6.6 billion; ZAR 2.7 billion returned to shareholders via dividends and buybacks.

Outlook and guidance

• Plan to open 40-50 new stores and pharmacies in FY2026, aiming for 1,200 stores medium-term.

• CapEx of ZAR 1.3–1.4 billion per annum planned, focused on store expansion, IT, and infrastructure.

• Inflation expected to remain low; continued focus on value, convenience, and differentiation.

• Medium-term targets maintained; no revision planned.

• Continued investment in systems, omni-channel, and specialised pharmacy formats.