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Clicks says private-label products boosted interim earnings

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Group raises dividend 15.1% as turnover increases 6.2% in the six months to February

Clicks Group says it grew headline earnings by 12.9% to R763.3m in the six months to February thanks in part to better sales of its private-label products and higher profits from its distribution business.

Retail health and beauty sales grew 8.5%, while UPD, the group’s pharmaceutical distributor, grew operating profit by 27.2% as it gained market share, Clicks said. While Eskom’s power cuts were weighing on consumer confidence and trading, Clicks said its brands “are well positioned to increase market share”.

Meanwhile, the UPD business had won two new bulk distribution contracts which would start late in the second half of the financial year.

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