South Africa’s leading pharmacy chain, Clicks Group, has posted a 13.2% increase in its half-year profit, showcasing a strong performance in its health and beauty segments. For the six-month period ending February 28, 2025, Clicks reported a basic headline earnings per share of 603.9 cents, up from 533.6 cents in the same period last year. This growth was largely driven by a substantial increase in sales from its retail health and pharmacy departments, the strong performance of private label products, and more promotional activities.
The company, which operates over 950 stores across South Africa, also saw a significant rise in its market share in key product categories. The increase in profit reflects both a higher volume of sales and improved operational efficiency. Clicks Group also declared an interim dividend of 238.0 cents per share, which further highlighted the company’s solid financial position.
Despite these positive results, Clicks Group acknowledged that it might face some challenges in the second half of the 2025 financial year. The company raised concerns about the potential impact of a proposed increase in the Value Added Tax (VAT), set to take effect from May 1, 2025. The VAT hike could potentially reduce consumer spending, which may affect retail sales in the coming months. However, Clicks Group remains optimistic about its long-term growth, as it continues to expand its network of stores and maintain a loyal customer base.
The company has shown resilience, especially in navigating the competitive landscape of South Africa’s retail pharmacy market. By focusing on growing its health and beauty product offerings, improving its customer service, and expanding its store network, Clicks Group is positioning itself for continued success. The increase in sales of its own private-label products is also expected to play a significant role in maintaining strong profitability in the future.
While the company expects some short-term challenges, especially with the VAT increase and potential shifts in consumer behavior, Clicks is confident in its ability to weather these issues and continue on its path of expansion. It plans to keep introducing new products, improve its retail services, and enhance customer experience. These efforts are expected to support its market position and ensure continued growth in the competitive South African retail market.
