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Johannesburg - Strong performances from its flagship Clicks chain and pharmaceutical wholesaler UPD enabled the Clicks Group to achieve strong earnings growth during its interim period.
On Thursday, the group reported growth of 24.5% in headline earnings per share, to 100c, for the six months to end February.
It declared an interim distribution of 30.5 cents per share, up 24.5% from the previous comparable period. Group turnover increased by 9.5% to R6.6bn.
CEO David Kneale said all the group's businesses traded well and strengthened their market-leading positions.
"While there has been no marked improvement in consumer spending over the past six months, the health and beauty markets in which the group operates have continued to show their resilience and grown well ahead of the overall retail sector," he said.
The group's retail turnover increased by 15.2% to R4.8bn. This was driven by the robust performance of the Clicks chain, which lifted turnover by 17.5%. Clicks has grown market share across all its core merchandise categories.
Over the interim period, Clicks opened 17 in-store dispensaries, extending the national pharmacy network to 224 out of a total store base of 354.
The pharmaceutical wholesaler subsidiary, UPD, also did not disappoint. It grew turnover by 6.7%. Clicks said UPD's growth was primarily due to the focus on its core customer groups, comprising Clicks, hospitals, Link pharmacies and the export business, which collectively accounted for 81% of wholesale turnover.
Musica turnover was nearly flat, growing by 0.5%, reflecting prevailing trading conditions in the entertainment market. Clicks said Musica continued to gain market share and remained the country's leading music and entertainment retailer.
Kneale said trading for the first seven weeks of the second half of the 2010 financial year had been at similar levels to the first six months.
"We are confident of sustaining our current performance in the second half and are forecasting growth of between 20% and 25% in diluted headline earnings per share for the full year," he said. "We will continue to maximise organic growth opportunities in the health and beauty markets."
- Fin24.com
