/ 23 January 2006

New Clicks turnover up 15,1%

Listed health and beauty retailer New Clicks has reported a 15,1% increase in turnover for the four months to end-December 2005 compared to that of the year-earlier period. In a trading update released on Monday, New Clicks said the group’s retail brands had increased sales by 9,8% during the period, while same-store sales were up 9,6%. UPD, the group’s wholesale pharmaceutical distributor, increased

its turnover by 30,2%.

Within the group, the Clicks chain of stores grew sales by 7,9% in the first four months of the financial year to 1.698 billion rand, with same-store sales rising by 9,9%. The total store sales growth was lower than same-store sales growth, the company explained, due largely to the closure of over 40 mainly PM&A pharmacy stores during the 2005 financial year.

Clicks stores had experienced internal selling price deflation of 0,7%, excluding the effects of any dispensed medication.

African beauty and hair care brand Discom posted an increase of 11,6% in total sales to R362,9-million for the period, reflecting the impact of the opening of a net seven stores during the year. Comparable store sales growth was 6,9%, while internal selling price deflation for the period was 0,5%.

The Entertainment division brands of Musica and CD Wherehouse lifted total sales by 19,6% to R304,1-million, boosted by the opening of seven new stores. Same-store growth was 11,9%.

Sales of The Body Shop were 4,4% higher than the corresponding period at

R23,9-million, while same-store sales were flat.

Within New Clicks’ wholesale distribution division, the group said UPD continued to gain market share as it attracted increasing sales volumes from independent retail pharmacies and private hospital groups. This had translated into an increase in turnover of 30,2% for the period to R1,23-billion from R943,3-million a year earlier.

New Clicks plans to release its interim results for the six months to end-February on May 4. – I-Net Bridge