Clicks reported strong results for the 2023 financial year, as the company increased turnover by over 8% despite a constrained operating environment.
Clicks reported its results for the year ended 31 August 2023 today, which revealed a robust performance from the retailer.
Group turnover increased by 8.2% to R41.6 billion, and retail turnover is up 12.2%.
However, retailer costs were impacted by higher insurance premiums and diesel costs, increasing by 11.4% with comparable retail cost growth of 7.4%.
Distribution costs also increased by 13.4% due to higher insurance, transport and diesel costs, as well as increased employment costs to maintain service levels during the system’s implementation
The retailer’s diesel costs to operate generators during load shedding totalled R53.8 million
Clicks’ headline earnings grew by 0.8% to R2.54 billion from R2.52 the previous year.
The retailer’s operations generated R5.9 billion in cash, of which R2.3 billion went to shareholders through dividend payments and share buybacks of R704 million, while R2.5 billion remained on the balance sheet.
Clicks attributed these results to improving margins and robust cash flow generation. The retailer said it achieved all its medium-term financial targets.
The retailer recorded market share gains in all its core product categories “in an environment of growing pressure on consumer disposable income”, it said.
“Strong growth in private label sales and the sustained recovery in the beauty category were supported by the Clicks ClubCard loyalty programme, which has grown to 10.4 million active members.”
The retailer also concluded three strategic acquisitions totalling R320 million during the period.
These businesses are the Sorbet beauty salon franchise chain of 194 outlets, M-Kem, a long-established 24-hour pharmacy in the Western Cape, and 180 Degrees, a pharmacy
software development company.
Clicks achieved a record capital expenditure of R930 million through the expansion of its store network and integrated supply chain, as the retailer opened its 850th store and 700th pharmacy during the year.
Clicks declared a final gross ordinary dividend of 494 cents per share – up from 457 cents the previous year.
The market has reacted well to the retailer’s strong results, as the share price is up over 6% following the release of the results.