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CLICKS GROUP LIMITED - Trading Update for 20 weeks to 16 January 2022

Release Date: 24/01/2022 16:00
Code(s): CLS     PDF:  
Wrap Text
Clicks Group Limited
(Incorporated in the Republic of South Africa)
Registration number: 1996/000645/06
JSE share code: CLS
ISIN: ZAE000134854
CUSIP: 18682W205
LEI: 378900E967958A677472
(?the group?)


-      Retail health and beauty sales up 14.4%
-      UPD total managed turnover up 10.1%
-      Group turnover up 10.4%

Retail health and beauty sales, including Clicks and the franchise brands of The Body Shop, GNC and Claire?s, increased by 14.4% (2021: 8.1%) over the corresponding 20 weeks in the previous financial year.
The group is reporting trading results from continuing operations.
Sales in comparable stores increased by 11.1% (2021: 4.4%), with selling price inflation averaging 3.3% (2021: 3.2%) for the period.
UPD?s total managed turnover, combining wholesale turnover and turnover managed on behalf of bulk distribution clients, increased by 10.1% (2021: 18.3%). Wholesale turnover in UPD increased by 2.5% (2021: 11.7%), with the growth rate impacted by the high base set in the prior period, owing to the severity of the second wave of Covid-19 which resulted in increased
hospitalisation and greater demand for medicines, compared to the fourth wave of the pandemic.
Group turnover increased by 10.4% to R15.1 billion (2021: increase of 10.0%). Segmental turnover (continuing operations)
Sales growth (%) Inflation (%)
Retail 14.4 3.3
Distribution 2.5 1.6
Intragroup turnover 6.4 -
Total group 10.4 2.7
Newly appointed chief executive Bertina Engelbrecht said the strong growth in retail sales has been supported by the national Covid-19 vaccination programme.
?The accessibility of our store and pharmacy network has been a major
strategic advantage during the pandemic. Clicks also administered 1.8 million vaccines during the 20-week period, generating sales of R685 million, an uplift of 6.9% to retail sales. Since the start of the vaccination programme in 2021 Clicks has administered 2.4 million vaccinations and currently operates 435 sites across the country. We expect to experience a sustained demand for booster doses of the vaccine in the months ahead.?
Engelbrecht said the second wave of the pandemic (Beta variant) in
December 2020 / January 2021 was more serious than the recent fourth wave (Omicron variant) and had a major impact on South Africans as the country did not yet have access to vaccines during the second wave.
?Last year the second wave drove significantly higher sales of preventative healthcare products including supplements, immunity-building vitamins, masks and sanitisers, while the impact of Omicron this year was less severe and resulted in lower purchases of medication and immune support products.?
Trading patterns are shifting as lockdown restrictions have eased, with Clicks reporting an improved performance from stores located in destination malls. However, trading continued to be adversely impacted by lost sales as a result of the stores damaged in the 2021 civil unrest in KwaZulu-Natal.
Both Clicks and UPD have continued to gain market share during the period.
The financial information in this trading update is the responsibility of the directors and has not been reviewed or reported on by the group?s independent auditor.
The Group?s interim results for the six months to 28 February 2022 are expected to be released on SENS on or about 28 April 2022. Cape Town 24 January 2022 Sponsor Investec Bank Limited Date: 24-01-2022 04:00:00
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