Wrap Text
Reviewed Condensed Consolidated Annual Group Results for the year ended 31 August 2026 and Cash Dividend Declaration
Clicks Group Limited
(Incorporated in the Republic of South Africa)
Registration number: 1996/000645/06
JSE and A2X share code: CLS
ISIN: ZAE000134854
CUSIP: 18682W205
LEI: 378900E967958A677472
(“Clicks Group”, “the group” or “the company”)
REVIEWED CONDENSED CONSOLIDATED ANNUAL GROUP RESULTS FOR THE YEAR ENDED
31 AUGUST 2026 AND CASH DIVIDEND DECLARATION
- Group turnover up 5.4%
- Trading margin down 10 bps to 9.7%
- Diluted HEPS up 4.4%
- Total dividend up 4.4% to 925 cents per share
- R6.3 billion cash generated by operations
- R3.4 billion returned to shareholders
- Return on equity 48.7%
Overview
In an environment of constrained consumer spending and aggressive
competitor discounting, group turnover increased by 5.4% to exceed
R50 billion for the first time. Retail turnover increased by 4.2% and
UPD’s reported turnover grew by 9.2%.
Retail turnover was constrained by low selling price inflation, increased
promotional activity and delays in implementing the warehouse management
system at the Cape Town distribution centre in the first half of the
year.
Clicks continued to expand its retail footprint, opening a net 41 stores
and 60 pharmacies, and increased its retail pharmacy market share to
24.7% from 24.1% in the prior year. Four UniCare specialist 24-hour
pharmacies were opened during the year.
Clicks ClubCard active membership grew to 13.1 million, with members
accounting for 84.2% of Clicks sales and receiving R976 million in
cashback rewards during the year. The programme was enhanced with an
additional 10% discount on 3 000 products, a joint campaign with Engen
and First National Bank to help members mitigate rising fuel costs and
the introduction of Standard Bank and ABSA as additional affinity
partners.
In August 2026, the group launched KwaMakhi, a neighbourhood convenience
brand targeting South Africa’s township market. The chain has a distinct
retail brand, dedicated product range and private label offering.
Following the financial year end, the group increased its shareholding in
premium beauty retailer ARC Store to 61%, through the acquisition of a
further 35.3% interest for R507 million. The transaction remains subject
to approval by the competition authorities.
UPD delivered strong growth in preferred bulk distribution contracts and
broadened its product offering through the acquisition of a medical
consumables distributor. The business has been successfully integrated,
and the expanded offering is now being marketed to hospital groups.
Financial performance
Group turnover increased by 5.4% to R50.4 billion. Retail turnover, which
includes Clicks, UniCare, The Body Shop, Sorbet corporate stores and now
KwaMakhi, increased by 4.2%. Turnover in comparable stores grew by 1.8%
and selling price inflation averaged 1.5% for the year, reducing from
2.3% in the first half to 1.2% in the second half.
Distribution turnover grew by 9.2%, mainly driven by a 19.3% increase in
revenue from preferred bulk contracts.
Total income grew by 5.1% to R15.6 billion. The retail margin improved by
90 basis points despite the increasingly competitive trading environment,
with the margin expansion primarily due to improved supply chain
efficiencies. The distribution margin declined by 90 basis points,
impacted by the lower single exit price (SEP) adjustment relative to the
prior year and the non-renewal of two bulk distribution contracts. The
group’s total income margin declined by 10 basis points to 31.0%.
Retail costs grew by 5.6%, with the higher depreciation from investment
in the business being offset by tightly managed employment costs.
Comparable retail costs grew by 3.6%. Distribution costs were well
controlled and increased by 4.1%.
Retail trading profit increased by 9.9% due to strong growth in other
income and efficient cost management, and the margin increased to 11.0%
from a normalised 10.8% in the prior year. UPD’s trading profit declined
by 10.4% due to the lower SEP adjustment and loss of distribution
contracts, with the margin 60 basis points lower at 2.7%. Group trading
profit increased by 4.7% to R4.9 billion and the group’s trading margin
was 10 basis points lower at 9.7%.
Headline earnings grew by 2.7% to R3.3 billion. Basic earnings per share
increased by 4.2% to 1 420 cents and headline earnings per share
increased by 4.4% to 1 422 cents.
Inventory increased by 11.1% and group inventory days were four days
higher at 82 days. Retail inventory growth reflects the expansion of the
store and pharmacy network while UPD held higher inventory to support the
new medical consumables range, GLP-1 products and new product launches as
well as strategic buy-ins. The group’s net working capital days improved
from 34 to 33 days.
Cash generated by operations totalled R6.3 billion. Capital expenditure
of R1.2 billion (2025: R985 million) was invested mainly in new stores
and pharmacies, store refurbishments, supply chain and information
technology.
The group delivered a sector-leading return on equity of 48.7% and
returned R3.4 billion to shareholders in dividend payments totalling R2.1
billion and share buybacks of R1.3 billion.
Outlook
The retail trading environment is expected to remain highly competitive,
with sustained discounting as consumers continue to face significant
pressure from rising fuel prices and higher interest rates which will
further constrain household spending.
Low selling price inflation is anticipated to continue in the year ahead.
UPD will, however, benefit from the extraordinary second annual
adjustment to the SEP of 2.88%, effective on 1 October 2026.
Clicks plans to open 40 - 50 new stores in the 2027 financial year and
remains committed to its medium-term target of 1 200 stores. Over the
medium term, the group also plans to roll out 10 - 15 UniCare specialised
pharmacies and expand its new KwaMakhi neighbourhood convenience brand.
Private label remains the primary driver of the group’s differentiation
strategy. Management aims to sustain the growth momentum in private label
and exclusive brands, targeting a 35% contribution to front shop sales
and 18% to pharmacy sales in the medium term.
The group will continue to leverage its investments in Sorbet, ARC Store,
UniCare, KwaMakhi, medical consumables and the LEAP retail pharmacy
system to support growth and strengthen its market position.
Capital expenditure of R1.5 billion is planned for the 2027 financial
year. This includes R780 million for new stores and pharmacies and the
refurbishment of 70 – 80 stores, with a further R673 million to be
invested in systems, omni-channel capabilities and the supply chain.
Final dividend
The board of directors has approved a final gross ordinary dividend for
the period ended 31 August 2026 of 667.0 cents per share (2025: 648.0
cents per share). The source of the dividend will be from distributable
reserves and paid in cash.
Dividends Tax (DT) of 20% amounting to 133.4 cents per ordinary share
will be withheld in terms of the Income Tax Act. Ordinary shareholders
who are not exempt from DT will therefore receive a dividend of
533.6 cents net of DT.
The company has 231 710 265 ordinary shares. Its income tax reference
number is 9061/745/71/8.
Shareholders are advised of the following salient dates in respect of the
final dividend:
Last day to trade “cum” the dividend Tuesday, 19 January 2027
Shares trade “ex” the dividend Wednesday, 20 January 2027
Record date Friday, 22 January 2027
Payment to shareholders Monday, 25 January 2027
Share certificates may not be dematerialised or rematerialised between
Wednesday, 20 January 2027 and Friday, 22 January 2027, both days
inclusive.
Mfundiso Njeke Bertina Engelbrecht Gordon Traill
Chairman Chief executive officer Chief financial officer
Cape Town
22 October 2026
This short-form announcement is the responsibility of the Clicks Group
board of directors and is a summary of the information in the detailed
annual results announcement and does not contain full or complete
details. This short-form announcement and the results contained herein
have been prepared in compliance with the Listing Requirements of the JSE
Limited.
The full announcement can be downloaded from
https://senspdf.jse.co.za/documents/2026/jse/isse/CLS/H22026.pdf
or on the group’s website at www.clicksgroup.co.za. The announcement is
available for inspection, at no charge, at Clicks Group’s registered
office during business hours for a period of 30 calendar days following
the date of this announcement. Any investment decision in relation to
Clicks Group’s shares should be based on the full announcement.
Review report
KPMG Inc., the group’s independent auditor, has reviewed the condensed
consolidated financial statements and has expressed an unmodified review
conclusion on the condensed consolidated financial statements. Their
review report is available for inspection at the company’s registered
office together with the condensed consolidated financial statements
identified in the auditor’s report.
These condensed financial statements have been prepared under the
supervision of Gordon Traill CA, the chief financial officer of the
group.
Directors: MJN Njeke* (Chairman), BD Engelbrecht (Chief Executive
Officer), RJD Inskip*, NNA Matyumza*, SS Ntsaluba*, PM Moumakwa*,
KC Ramon*, GD Traill^ (Chief Financial Officer), A van Sittert*#
* Independent non-executive
# Appointed 1 February 2026
^ British
Registered office: Cnr Searle and Pontac Streets, Cape Town 8001
Transfer secretaries: Computershare Investor Services Proprietary Limited
Sponsor
Investec Bank Limited
Date: 22/10/2026 08:00:00
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