Clicks Group (CLS) H2 2026 earnings summary

Executive summary

• FY2026 turnover rose 5.4% to R50.414bn; diluted HEPS increased 4.4% to 1,422c amid constrained consumer spending and intense competition.

• Operations generated R6.3bn in cash inflows; R3.4bn was returned to shareholders, including R1.3bn in buybacks.

• Opened the 1,031st store and 835th pharmacy; active ClubCard membership reached 13.1m, while digital and adjacent healthcare, beauty and convenience platforms expanded.

Financial highlights

• Turnover increased 5.4% to R50.414bn; total income rose 5.1% to R15.615bn.

• Trading profit grew 4.7% to R4.898bn; total income margin eased to 31.0% from 31.1%, and trading margin to 9.7% from 9.8%.

• Retail turnover rose 4.2% to R39.126bn; same-store growth was 1.8%, with new stores and pharmacies contributing 2.4% to sales growth.

• Cash generated by operations was R6.3bn; inventory rose 11.1% to R8.690bn, while net working capital improved to 33 days from 34.

Outlook and guidance

• FY2027 capex planned at R1.453bn, including R780m for stores and R673m for infrastructure; annual capex of R1.5bn–R1.8bn planned for the following three years.

• Medium-term targets include 40–50 store openings annually, 1,200 stores and 15–20 UniCare specialist pharmacies.

• Private label and exclusive brands target 35% of front-shop sales and 18% of pharmacy sales; dividend payout target is 60%–65% and retail trading margin guidance 10%–11%.

• Low selling-price inflation and constrained consumer spending expected to persist; the 2.88% SEP increase took effect 1 October 2026, with its FY2027 benefit uncertain amid manufacturer pricing pressure.