Retailer Clicks Group posted a 25% rise in first-half profit, boosted by sales of healthcare and beauty products, but it stuck to a cautious outlook, citing slack demand.
Retailers in Africa’s biggest economy have been squeezed as their customers battle with unemployment and high debt, but Clicks has fared better due to its mainstay pharmacy business.
South Africa last year exited its first recession in nearly two decades, but household finances and retail sales remain weak.
Clicks, South Africa’s biggest drugstore chain, said on Thursday headline earnings per share rose to 100,5 cents from 80,7 cents, in line with its forecast range of 20% to 25% increase.
The retailer said it also expects full-year profit to increase by about a quarter, helped by growth in beauty and healthcare sales.
Rival retailer Pick n Pay on Wednesday reported a flat full-year profit and said it expected more difficulty ahead.
Shares in Clicks have rallied more 15% so far this year, outpacing a nearly 5% rise in the broader JSE’s all-share index. — Reuters