Clicks surges as market share gains help deliver double-digit earnings growth

Shares in Clicks surged more than 7% at one point on Thursday after it reported a recovery in beauty products and market share gains helped ensure double-digit earnings growth in its year to end-August.

The pharmaceutical retailer, valued at about R59 billion on the JSE, reported that adjusted headline earnings grew about 11% to R2.5 billion amid a 12.2% increase in retail sales, which includes its Clicks stores, supplement business GNC, The Body Shop and Sorbet.

The group said it delivered stronger second-half turnover growth and recorded market share gains in all core product categories in an environment of growing pressure on consumer disposable income. A sustained recovery in the beauty category was supported by the Clicks Club Card loyalty programme, which has grown to 10.4 million active members.