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Unaudited Interim Group Results for the six months ended 28 February 2026 and Cash Dividend Declaration
CLICKS GROUP â€" INTERIM RESULTS 2026
SHORT-FORM ANNOUNCEMENT FOR SENS
Clicks Group Limited
(Incorporated in the Republic of South Africa)
Registration number: 1996/000645/06
JSE and A2X share code: CLS
ISIN: ZAE000134854
CUSIP: 18682W205
LEI: 378900E967958A677472
(“Clicks Group�, “the group� or “the company�)
UNAUDITED INTERIM GROUP RESULTS FOR THE SIX MONTHS ENDED
28 FEBRUARY 2026 AND CASH DIVIDEND DECLARATION
Key features
- Group turnover up 7.4%
- Trading margin maintained at 9.1%
- Diluted HEPS up 8.1%
- Interim dividend up 8.4% to 258 cents per share
- R1.9 billion cash generated by operations
- R2.3 billion returned to shareholders
- Return on equity 45.7%
Overview
Against a background of constrained consumer spending and internal systems challenges, Clicks delivered a resilient performance, with pharmacy sales increasing by 8.6% and retail pharmacy market share strengthening to 24.9% from 24.2% in the prior period.
Retail turnover was impacted by delays in the implementation of the warehouse management system (WMS) at the Clicks distribution centre in Cape Town which reduced product availability in Western Cape and Eastern Cape stores, particularly over the festive season. Management estimates that the systems delay reduced retail turnover by approximately R175Â million (0.9% of retail sales). Product availability improved steadily and returned to targeted levels by the end of February 2026.
Retail trading was further impacted by aggressive competitor discounting over the festive season.
Clicks reached a significant milestone with the opening of its 1Â 000th store, increasing its footprint to 1 003 stores while the national pharmacy network was expanded to 795.
Clicks ClubCard grew active membership by 800Â 000 to 12.9Â million, contributing 83.7% of sales in Clicks. Loyalty members received R527Â million in cashback rewards during the six months.
UPD delivered strong growth in wholesale and preferred supplier bulk distribution turnover. However UPD remains constrained in the hospital and independent channels. The business continued to demonstrate disciplined cost management, supported by lower electricity and fuel costs following its early investment in solar energy, battery storage and electric delivery vehicles. UPD has doubled its fleet of pharma-compliant electric vehicles to 85, with 86% of wholesale deliveries and 74% of total travel no longer exposed to fuel costs.
Financial performance
Group turnover increased by 7.4% to R24.9 billion. Retail turnover, which includes Clicks, UniCare, The Body Shop and Sorbet corporate stores, increased by 5.4%. Turnover in comparable stores grew by 3.1% and selling price inflation averaged 2.3% for the six-month period.
Distribution turnover grew by 13.0%, mainly driven by a 31.1% increase in revenue from preferred supplier bulk contracts.
Total income grew by 6.5% to R7.6 billion. The retail margin expanded by 70 basis points primarily driven by private label volume growth. The distribution margin declined by 50 basis points, impacted by the lower adjustment in the single exit price of medicines relative to the prior year and the loss of two bulk distribution contracts. The group’s total income margin declined by 30 basis points to 30.7%.
Retail costs grew by 6.1%, with employment costs higher due to a 7.0% annual wage increase and expenses relating to the WMS implementation. Comparable retail costs grew by 5.4%. Distribution costs increased by 6.8%, impacted by the investment in systems.
Group trading profit increased by 7.4% to R2.3 billion and the group’s trading margin was maintained at 9.1%. The retail margin increased to 10.3% from a normalised 10.2% in the prior period. UPD’s trading margin was 10 basis points lower at 2.5%.
Headline earnings grew by 6.4% to R1.5 billion. Basic earnings per share increased by 8.3% to 653 cents and headline earnings per share increased by 8.1% to 653 cents, benefiting from share buybacks in the last 18Â months.
Inventory levels increased by 13.4% and group inventory days were four days higher at 89 days. Retail inventory was impacted by the WMS implementation as well as the opening of new stores and pharmacies. The group’s net working capital days improved from 45 to 43 days.
Cash generated by operations totalled R1.9 billion. Capital expenditure of R311 million (H1 2025: R222 million) was invested mainly in new stores and pharmacies, store refurbishments, supply chain and information technology (IT).
The group returned R2.3 billion to shareholders in dividend payments totalling R1.5 billion and share buybacks of R752 million.
Outlook
The consumer environment is expected to remain under significant pressure in the second half as rising fuel prices and associated inflationary pressures constrain household spending.
Clicks plans to open 40 â€" 50 new stores and 40 â€" 50 new pharmacies in the 2026 financial year. In addition, 10 differentiated concept stores will be piloted in the second half of the year.
UPD recently acquired a medical consumables business and will be launching this offering to customers.
Capital expenditure of R1.3 billion is planned for the 2026 financial year. This includes R662 million for new stores and pharmacies and the refurbishment of 80 â€" 90 stores. A further R594 million will be invested in supply chain, IT and infrastructure.
The group remains committed to achieving its medium-term financial targets as well as its medium-term store target of 1Â 200.
Full-year earnings forecast
The directors forecast that the group’s diluted HEPS for the financial year ending 31 August 2026 will increase by between 4% and 9% relative to the 2025 financial year.
This forecast is based on the following assumptions:
• the retail environment is anticipated to remain constrained in H2 2026;
• geopolitical conflict will adversely affect South Africa’s
macroeconomic outlook and growth prospects;
• the group’s full-year performance being within the published medium-
term targets; and
• no changes in the regulatory environment.
Shareholders are advised that this forecast is the responsibility of the board of directors and has not been reviewed or reported on by the group’s independent auditor.
Interim dividend
The board of directors has approved an interim gross ordinary dividend for the period ended 28 February 2026 of 258.0 cents per share (2025: 238.0 cents per share). The source of the dividend will be from distributable reserves and paid in cash.
Dividends Tax (DT) of 20% amounting to 51.6 cents per ordinary share will be withheld in terms of the Income Tax Act. Ordinary shareholders who are not exempt from DT will therefore receive a dividend of 206.4 cents net of DT.
The company has 233 850 924 ordinary shares. Its income tax reference number is 9061/745/71/8.
Shareholders are advised of the following salient dates in respect of the interim dividend:
Last day to trade “cum� the dividend Tuesday, 30 June 2026
Shares trade “ex� the dividend Wednesday, 1 July 2026
Record date Friday, 3 July 2026
Payment to shareholders Monday, 6 July 2026
Share certificates may not be dematerialised or rematerialised between Wednesday, 1 July 2026 and Friday, 3 July 2026, both days inclusive.
Mfundiso Njeke Bertina Engelbrecht Gordon Traill
Independent non-executive Chief executive Chief financial
chairman officer officer
Cape Town
23 April 2026
This short-form announcement is the responsibility of the Clicks Group board of directors and is a summary of the information in the detailed interim results announcement which has been prepared in compliance with the Listings Requirements and does not contain full or complete details.
The full announcement can be downloaded from
https://senspdf.jse.co.za/documents/2026/jse/isse/CLS/H12026.pdf
or on the group’s website at http://www.clicksgroup.co.za. The announcement is available for inspection, at no charge, at Clicks Group’s registered office during business hours for a period of 30 calendar days following the date of this announcement. Any investment decision in relation to Clicks Group’s shares should be based on the full announcement.
Directors: MJN Njeke* (Chairman), BD Engelbrecht (Chief executive officer), RJD Inskip*, NNA Matyumza*, SS Ntsaluba*, PM Osiris (née Moumakwa)*, KC Ramon*, GD Traill†(Chief financial officer),
A van Sittert*#
* Independent non-executive
# Appointed on 1 February 2026
†British
Registered office: Cnr Searle and Pontac Streets, Cape Town 8001
Transfer secretaries: Computershare Investor Services Proprietary Limited
Sponsor
Investec Bank Limited
Date: 23-04-2026 08:00:00
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