GROUP TARGETS

Financial targets

Clicks Group sets medium-term financial targets to be achieved over each rolling three-year period. Following the completion of the planning for the three years to 2013, five of the financial targets have been revised upwards to reflect improved performance and prospects.

      Medium-term targets Performance in 2010 Medium-term targets
      2010 – 2012   2011 – 2013
Return on shareholders’ interest (ROE) (%) 40 – 50 50.8 50 – 60*
Shareholders’ interest to total assets (%)     30 – 35 27.8 30 – 35
Return on total assets (%)     13 – 16 13.9 14 – 18*
Inventory days     55 – 60 55 50 – 55*
Operating margin (%)          
Group     5.5 – 6.5 6.2 6 – 7*
Clicks     6 – 7 6.9 6.5 – 7.5*
UPD     2.7 – 3 3.1 2.7 – 3
Musica     5 – 6 5.5 5 – 6
The Body Shop     14 – 16 17.9 14 – 16
           
* indicates targets that have been revised

The following assumptions have been applied in determining these argets:

  • No marked change in the trading environment
  • No increase in dispensing fees currently charged by Clicks
  • The operating margin of UPD does not include (a) any trading benefit from an increase in the single exit price of medicines in the forthcoming financial year or (b) the business gaining significant third party distribution agency contracts

Sustainability targets

Clicks Group is currently developing an integrated sustainability strategy and has defined four commitments which are central to the delivery of the strategy:

  • Building a trusted, accessible healthcare network
  • Sourcing products valued by our customers
  • Empowering motivated, passionate people
  • Lightening our footprint

Sustainability indicators and targets will be determined for each of these commitments and will be disclosed to shareholders in the 2011 financial report.

Operating plans for 2011

Store development and trading space
Net new stores planned for 2011  
Clicks   20 – 30
Musica  
The Body Shop   3
Clicks pharmacies (in new and existing stores) 30 – 40
Refurbishments and relocations 20 – 25
Total trading space growth 4% – 5%
   
       
Capital expenditure (Rm)
Store development   131
Information technology 78
Other   41
Total   250