Clicks Group reports $1.5 billion turnover under Bertina Engelbrecht

Clicks Group, the Cape Town-based retailer and Africa’s largest listed pharmacy operator led by South African executive Bertina Engelbrecht, reported turnover of R24.9 billion ($1.51 billion) for the six months ended February 28 2026, supported by solid growth in its pharmacy and wholesale businesses despite operational disruptions and a constrained consumer environment.

Group turnover rose 7.4% year-on-year, as strong demand in healthcare and continued network expansion offset weaker retail trading conditions and temporary supply chain constraints linked to systems upgrades at its Cape Town distribution centre.

Pharmacy business remains key growth driver

The pharmacy division remained the standout performer, with sales increasing 8.6% and market share strengthening to 24.9% from 24.2% a year earlier. Growth was underpinned by higher prescription volumes, sustained demand for healthcare products, and continued expansion of the group’s national footprint, which now spans 795 pharmacies.

Chief Executive Officer Bertina Engelbrecht said performance reflected resilience in healthcare demand and continued gains in loyalty-driven sales, with the group’s ClubCard programme reaching 12.9 million active members.

Retail hit by systems disruption and competition

Retail trading was partly constrained by delays in the rollout of a warehouse management system at the group’s Cape Town distribution centre, which reduced product availability in parts of the Western and Eastern Cape, particularly over the festive period. The disruption is estimated to have reduced retail turnover by about R175 million ($10.6 million).

At the same time, aggressive competitor discounting over the festive season added further pressure to retail performance. Product availability improved steadily and returned to normal levels by the end of February 2026.

Despite these headwinds, retail turnover grew 5.4%, supported by store expansion and ongoing private-label growth.

Wholesale unit posts strong double-digit growth

The group’s wholesale arm, United Pharmaceutical Distributors (UPD), delivered strong performance, with turnover rising 13%, driven by a 31.1% increase in revenue from preferred supplier bulk contracts.

UPD continued to benefit from disciplined cost control and efficiency gains, including reduced fuel exposure through its expanded electric delivery fleet. However, growth was partly offset by weaker performance in hospital and independent pharmacy channels, as well as the loss of two bulk distribution contracts, which weighed on margins.

Financial performance and outlook

Group trading profit increased 7.4% to R2.3 billion ($139.31 million), with the trading margin maintained at 9.1%. Headline earnings rose 6.4% to R1.5 billion ($90.84 million), while return on equity remained strong at 45.7%.

Clicks generated R1.9 billion ($115.11 million) in operating cash flow and returned R2.3 billion ($139.31 million) to shareholders through dividends and share buybacks during the period.

Looking ahead, the group expects continued pressure on consumer spending amid rising inflation and fuel costs, but remains focused on expansion, with plans to open up to 50 new stores and pharmacies in fiscal year 2026 and invest R1.3 billion ($78.76 million) in capital expenditure.

Clicks said it remains on track to meet its medium-term targets, including a network goal of 1,200 stores and steady earnings growth in the second half of the year.