At a Glance
- Pharmacy turnover rose 9 percent, supported by prescription volumes and expanding national footprint.
- Group turnover climbed 7.4 percent despite festive discounting and distribution system disruptions.
- UPD delivered double-digit growth, though lost contracts weighed on managed wholesale turnover.
Clicks Group, Africa’s largest retail pharmacy operator based in Cape Town, reported turnover of more than $1.2 billion for the first 20 weeks of its 2026 financial year, driven by strong growth in its pharmacy and wholesale businesses.
According to the Group’s trading update for 20 weeks, the Group turnover rose 7.4 percent year-on-year for the period ended Jan. 11 2026, to R19.5 billion ($1.2 billion), as rising prescription volumes, healthcare demand and network expansion offset pressure across parts of its retail operations. Pharmacy remained the group’s strongest growth engine, while wholesale unit United Pharmaceutical Distributors delivered double-digit gains.
Pharmacy unit drives growth
Pharmacy remained the group’s primary growth engine, with turnover increasing 9 percent during the period. Growth was supported by higher prescription volumes, sustained healthcare demand and continued expansion of the group’s national pharmacy footprint.
Chief Executive Officer Bertina Engelbrecht said performance was underpinned by strong pharmacy sales, record Black Friday trading and solid demand for festive gifting ranges.
Retail faces competitive pressure
Retail momentum was partly constrained by aggressive discounting from competitors over the festive season. Additional pressure came from operational disruptions at the group’s Cape Town distribution centre, where delays linked to the rollout of a new warehouse management system affected product availability in Western Cape stores.
The group estimated the disruption reduced retail sales by about R120 million ($7.45 million). Product availability has since improved, with operations expected to normalize by February.
Wholesale unit posts double-digit growth
On the wholesale side, United Pharmaceutical Distributors delivered turnover growth of 11.4 percent, supported by improved purchasing compliance and an increase in the number of Clicks pharmacies supplied.
However, the non-renewal of two bulk agency distribution contracts led to a 20.2 percent decline in notional turnover from those clients, slightly weighing on total managed turnover.
Clicks model and Outlook
Clicks’ diversified model, combining retail, pharmacy and pharmaceutical distribution, continues to provide earnings stability. With over 990 stores and about 780 pharmacies nationwide. Clicks dominates South Africa’s pharmacy retail market through its nationwide footprint and integrated wholesale operations.
Its consumer-health focus, steady cash generation, and defensive earnings profile have made it one of the most valuable healthcare stocks on the JSE. Clicks Group Ltd is currently the 38th most valuable stock on the JSE with a market capitalization of R73.6 billion ($4.57 billion), which makes about 0.304 percent of the Johannesburg Stock Exchange equity market.
With healthcare demand remaining structurally strong and operational challenges easing, the group is positioning for steady growth ahead of its interim results, expected in April 2026.
