Clicks Group posted a 27% rise in full-year profit helped by strong sales of health and beauty products.
Clicks, South Africa’s largest pharmaceutical store chain, said on Thursday diluted headline earnings per share totalled 211,4 cents in the year to end-August from 165,9 cents a year earlier.
Headline EPS is the main profit gauge in South Africa and strips out certain one-off and non-trading items.
Revenue increased 9% to R13,9-billion from R12,8-billion.
The company said it plans to spend R250-million in the current financial year on capital expenditure, to increase its floor space by as much as 5%.
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 emphasis on pharmacies and beauty products.
South African retail sales growth slowed unexpectedly in August, data showed this month, highlighting subdued demand from indebted consumers and the end of the World Cup.
Shares of South African retailers have jumped this year, after US firm Wal-Mart said it was in talks to acquire local discounter Massmart, boosting speculation tha other large firms could be looking to make a similar acquisition.
Shares of Clicks have gained more than 65% so far this year, outpacing a 9% gain Johannesburg’s all-share index. – Reuters