Clicks hikes annual profit by 14% as ClubCard members prove their loyalty

Health and beauty retailer Clicks has reported a strong performance in a constrained trading environment for the year to end-August 2025.

The Group says this was driven by expanding margins, disciplined cost management and robust cash generation.

Group turnover increased by 5.3% to R47.8 billion, with retail turnover up 6.0% and distribution turnover growing by 5.1%.

Diluted headline earnings per share (HEPS) jumped by 14.1% and the Group achieved an 'industry-leading return on equity' of 49.2%.

Trading margin expanded by 60 basis points to 9.8% and has grown by 160 basis points over the past five years, Clicks says.

The Group declared a total dividend of 886 cents per share based on a 65% payout ratio, an increase of 14.2% over the previous reporting period.

Clicks opened 55 new stores during the year, expanding the number to 990.

The national pharmacy footprint was expanded to 780 locations with the opening of 60 new pharmacies

The Group plans to open 40-50 stores and 40-50 pharmacies in the year ahead as it moves closer to its medium-term target of 1 200 stores.

Clicks ClubCard holders contributed to a massive 82.6% of sales, with active membership growing to 12.6 million. (The figure reflected in the Group's half-year results to end-February was 12.1 million.)

The loyalty programme marks its 30th anniversary this year, and Group CEO

Bertina Engelbrecht says members have been sharing their stories, with some having signed up at inception in 1995.

"That's an incredible story of loyalty - we ARE the most widely used loyalty programme in South Africa, and when you have the kind of loyal customer base that we have, that augurs very well for your continued growth."

The retail giant's main competitor recently announced an upgrade to its own rewards programme, a development which Engelbrecht acknowledges with a chuckle.

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When you are first and you're successful, you should that others are going to try and emulate you, she comments.

"I view that as flattery... We've made many adjustments to ClubCard over the 30 years and we will continue to do so. Look at the Affinity programme for example; that is very difficult to duplicate because we've always looked at market leaders in their respective fields... so we strive to ensure that the affinity partners not only speak to the wants and needs of the customer but are a fit strategically."

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