Established in Cape Town in 1968, Clicks Group is one of the most prominent retail-led healthcare groups in South Africa. Clicks shares were first listed on the Johannesburg Stock Exchange (JSE) in 1979 with a market cap of R 10 million, and the group quickly grew to 44 stores by 1983. Today, the group has 657 stores and achieved turnover of more than R 19 billion in 2015.
The group’s largest subsidiary is Clicks, which is South Africa’s leading health and beauty retailer and has the country’s largest retail pharmacy chain with 361 pharmacies in-store. Other retail chains controlled by the group include The Body Shop, GNC, Claire’s and Musica, as well as South Africa’s leading all-range pharmaceutical wholesaler UPD. In 2015, retail accounted for 82% of operating profits, whilst distribution through UPD and Clicks Medicines Direct contributed 18%.
Whilst most of the Click’s Group’s stores are situated in South Africa, the group also has 34 stores split between Namibia, Swaziland, Lesotho and Botswana.
Clicks Shares Growth Driver
On the retail side, the Clicks Group makes products for sale to the consumers in South Africa’s growing middle to upper income markets. Through its highly sustainable combination of healthcare and beauty, the group has had a history of producing profits and good dividends through the most taxing of economic conditions. The group leads the retail market in terms of return on equity, with an average return of around 55% per year.
Trade conditions recently have been demanding for the group, as consumers in the middle income market are placed under increasing financial pressure to buy products. Despite constrained customer spending, all of the group’s retail brands have managed to report volume growth in 2015. Moves to buy into competitive pricing and promotions to attract value-conscious customers were attributed as reasons for increasing sales by 10.9%.
Clicks also showed double digit growth in front shop medicines, vitamins and supplements, and actively focused on shifting patients to lower cost generic medicines. Musica, meanwhile, commands a 60% share of South Africa’s CD market and a 43% share of the DVD market, continuing to deliver superior returns in the entertainment retail market. UPD continues to play an integral part in the group’s growth, increasing turnover by 21.6%.
Clicks Group Investor Tip
Clicks is undoubtedly still well-positioned to continue its remarkably strong performance over the years, despite a weakening outlook for consumer spending. The core health and beauty markets are relatively resistant to economic instability, and a strong value proposition makes Clicks very appealing to customers. The group has considerable resources to expand its store and pharmacy footprint, and capital expenditure of R455 million is being invested for the 2016 financial year.
The company is hugely cash-generative and has always followed a policy of returning dividends to shareholders. Clicks share price continues to rise up the live online stocks chart. Based on past trends, the forecast is that Clicks share price should continue to rise, making the share a blue chip buy.
Clicks Major Shareholders
Government Employees Pension Fund, Fidelity International Growth Fund, GIC Private.
Retail – Consumer Staples
Food & Drug Stores
How to buy Clicks Group Shares
Clicks : How to buy Clicks Group Shares Online
We have made it simple to buy JSE listed firm shares online. The easiest way to buy ClicksGroup shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Clicks Group and assist you with the setup and management of your stock portfolio account.
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