/ 14 April 2011

Clicks first-half profit up, sees strong FY profit

Retailer Clicks Group posted a 22% rise in first-half earnings on Thursday; driven by a strong performance in its core drug chain store and said it saw strong full-year growth.

Clicks, South Africa’s largest drug store chain, said diluted headline earnings per share totalled 122,2 cents for the six months to end-February versus 100 cents in the same period a year ago.

Headline EPS, the main measure of earnings in South Africa, strip out certain one-time and non-trading items.

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 popular beauty products.

Clicks also forecast a full-year profit rise of 17% to 22%, boosted by organic growth from store expansion and the opening of additional pharmacies.

Rival retailer Pick ‘n Pay last month forecast a 10% to 25% decline, stung by higher costs and industrial action. — Reuters