Clicks Group delivered a strong trading and operational performance in a constrained trading environment for the year ended August 2025, driven by expanding margins, disciplined cost management and robust cash generation. Diluted headline earnings per share increased by 14.1% and the group achieved an industry-leading return on equity of 49.2%.

Group turnover increased by 5.3% to R47.8 billion, with retail turnover up 6.0% and distribution turnover growing by 5.1%. The group’s trading margin expanded by 60 basis points to 9.8% and has grown by 160 basis points over the past five years.

The total dividend was increased by 14.2% to 886 cents per share, based on a 65% payout ratio.

The group remained highly cash generative, with cash inflows from operations increasing by R605 million to R6.6 billion. R2.7 billion was returned to shareholders in dividend payments and share buybacks while almost R1 billion was reinvested in capital projects. At the financial year-end, the group held cash resources of R3.3 billion.

The group maintained its track record of shareholder wealth creation and has delivered a compound annual growth of 17.3% in total shareholder return over the past 10 years.

Chief executive Bertina Engelbrecht said the group once again demonstrated the resilience of its core product offering in a weak trading environment, delivering growth across its strategic pillars of value, convenience, differentiation and personalisation.

“Clicks reported strong growth of 10.7% in private label and exclusive brands which accounted for R9.7 billion of the chain’s turnover,” she said. “One in every three products sold in our front shop is now a private label or exclusive product. The quality and innovation supporting these products was recognised in the SA Product of the Year awards where six of our private label products won their respective categories.”

The iconic Clicks ClubCard loyalty programme, which celebrates its 30th anniversary this year, grew active membership to 12.6 million and contributed 82.6% of sales in Clicks. Loyalty members received R855 million in cashback in the past year, bringing total rewards paid to customers since the inception of the programme to R7.5 billion.

Clicks entrenched its leading position in the baby category, growing market share by 80 basis points to 23.1%. The Clicks baby strategy integrates private label and online offerings, specialist baby stores and store-in-stores in Clicks, competitive pricing and Baby ClubCard benefits. The Clicks Baby standalone stores increased sales by 23%, store-in-store sales grew 12% and online sales increased by 27%.

Clicks extended its store base to over 990 following the opening of a net 55 stores. The national pharmacy footprint was expanded to 780 locations with the opening of a net 60 pharmacies during the year. Currently 53.2% of South Africa’s population live within 5 kilometres of a Clicks pharmacy, highlighting the convenience of the pharmacy chain.

As part of its commitment to carbon neutrality, the group’s pharmaceutical wholesaler, UPD, introduced South Africa’s first fleet of zero-emission, pharma-compliant electric delivery vehicles. The 42 vehicles, equipped with solar-powered refrigeration, currently serve customers across Gauteng and the Western Cape. A further 40 electric vehicles will be added to the fleet in the new year.

On the outlook for the year ahead, Engelbrecht said that while consumer sentiment and discretionary retail spending remain under pressure, Clicks Group is well positioned in this environment due to its competitive advantage in the defensive health and beauty sectors where it holds market-leading shares.

“We aim to sustain the strong growth momentum in private label and exclusive brands, targeting a 35% contribution to front shop sales over the medium term,” she said. “The group will also leverage recent investments in Sorbet, UniCare and the new pharmacy system while continuing to invest in enhancing the group’s omni-channel capability.”

Clicks plans to open 40 – 50 stores and 40 – 50 pharmacies in the year ahead as it moves closer to its medium-term target of 1 200 stores. In addition, the group plans to open 10 – 15 UniCare specialised pharmacies over the medium term.

Capital investment of R1.3 billion is planned for the new year, with 53% allocated to the opening of new stores and pharmacies, as well as store refurbishments.