Clicks Group Limited · JSE:CLS
Clicks — FY2025 Earnings Presentation
35 slides from Clicks's earnings presentation, Aug 31, 2025
Slide 1: Annual results for the year ended 31 August 2025
2025 Annual results for the year ended 31 August 2025
Slide 2: Contents
Contents 01 Review of the year 02 Financial results 03 Trading performance 04 Strategy and outlook 05 Questions 2
Slide 3: Review of the year
01 Review of the year Bertina Engelbrecht 3
Slide 4: Review of the year
Review of the year • Performance continues to prove defensiveness of the group • Diluted HEPS up 14.1% • Return on equity of 49.2% • 30th birthday of Clicks ClubCard, 12.6m active members • Opened 990th Clicks store and 780th pharmacy • Market share gains in core health & beauty categories • UPD cor
Slide 5: Financial Results
02 Financial Results Gordon Traill 5
Slide 6: Financial highlights
Financial highlights Turnover up Total income margin Trading margin Diluted HEPS up 14.1% up from 30.2% to up from 9.2% to 5.3% Retail turnover up 6.0% 31.1% 9.8% to 1 361.7 cps UPD total managed turnover up 2.0% Cash generated Returned to Return on equity Total dividend up 14.2% by operations share
Slide 7: Turnover
Turnover % same % stores % R’m 2025 2024 change growth inflation Retail 37 554 35 438 6.0 4.3 2.6 Distribution 18 658 17 750 5.1 1.3 Intragroup turnover (8 384) (7 750) 8.2 Total group 47 828 45 438 5.3 2.1 • 7.0% Retail turnover growth excluding Unicorn Pharmaceuticals in FY2024 • Retail value grow
Slide 8: Total income
Total income % 2025 2024 R’m 2025 2024 change % margin % margin Retail 13 252 12 264 8.1 35.3 34.6 Distribution 1 843 1 769 4.2 9.9 10.0 Intragroup turnover (234) (318) Total group 14 861 13 715 8.4 31.1 30.2 • Retail margin driven by strong growth in private label and supply chain efficiencies • UP
Slide 9: Trading expenditure – Retail
Trading expenditure – Retail % R’m 2025 2024 change Depreciation – PPE 598 575 4.0 Depreciation – ROU asset 1 133 1 032 9.8 Occupancy costs 210 210 0.1 Employment costs 4 897 4 529 8.1 Other costs 2 483 2 290 8.4 Total retail costs 9 321 8 636 7.9 % of turnover 24.8% 24.4% Finance costs – lease liab
Slide 10: Trading expenditure – Distribution
Trading expenditure – Distribution % R’m 2025 2024 change Depreciation – PPE 72 58 24.5 Depreciation – ROU asset 9 17 (46.4) Occupancy costs 3 4 (18.8) Employment costs 385 378 2.0 Other costs 749 738 1.4 Total distribution costs 1 218 1 195 1.9 • Depreciation of PPE driven by investment in systems
Slide 11: Trading profit
Trading profit % 2025 2024 R’m 2025 2024 change % margin % margin Retail 3 932 3 628 8.4 10.5 10.2 Distribution 625 574 9.0 3.3 3.2 Intragroup 122 (30) Total group 4 679 4 172 12.1 9.8 9.2 • Retail margin is 10.8% including Unicorn intragroup profit • Intragroup a result of unwind of profit on Unico
Slide 12: Growth in turnover, profit and margin
Growth in turnover, profit and margin 9.8% 9.2% 8.7% 8.2% 8.4% 7000 48 000 47 828 44 000 6000 45 438 40 000 41 622 39 587 36 000 5000 37 339 32 000 4 679 28 000 4000 4 172 24 000 3 623 3000 3 325 20 000 3 045 16 000 2000 12 000 8 000 1000 4 000 - 0 2021* 2022* 2023 2024 2025 Turnover(R’m) Trading pr
Slide 13: Inventory
Inventory Days in stock Inventory (R’m) 2025 2024 2025 2024 % change Retail 77 76 5 613 5 245 7.0 Distribution 45 42 2 265 1 999 13.3 Intragroup inventory (59) (181) Total group 78 74 7 819 7 063 10.7 • Retail inventories impacted by new stores opened in July & August and focus on availability to dr
Slide 14: Cash management
Cash management 6 534 R’m 73 (1 066) (228) (1 167) (985) 52 (1 911) 3 256 (751) 2 705 Cash Trading Repayment Working Net finance Taxation Capex Dividends Share Other Cash FY2024 profit of lease capital costs buybacks operating FY2025 before liability movements and working investing capital activitie
Slide 15: Capital returned to shareholders
Capital returned to shareholders 3 000 R’m 2 500 Total returned to date since 2006 of R22.3 billion (dividends R14.5 billion + 2 000 R7.8 billion buybacks at an average price of R47.33 – value of shares bought back at year end was R61.2 billion) 1 500 1 000 500 0 2006 2007 2008 2009 2010 2011 2012 2
Slide 16: Capital expenditure
Capital expenditure • R1 256m capex planned for FY2026 • R662m on stores: - 40 – 50 new Clicks stores and pharmacies - 70 – 80 store refurbishments • R594m on infrastructure: - R88m on UPD IT and warehouse equipment - R506m on retail systems and infrastructure, including WMS rollout to Cape Town, Ce
Slide 17: Medium-term financial targets
Medium-term financial targets Achieved Medium-term in FY2025 target ROE (%) 49.2 40 – 50 ROIC excluding IFRS 16 (%) 47.0 40 – 50 ROIC (%) 30.7 20 – 30 ROA (%) 14.9 11 – 15 Net working capital days 34 30 – 35 Group trading margin (%) 9.8 9.0 – 10.0 Retail 10.5 10.0 – 11.0 Distribution 3.3 2.8 – 3.3 D
Slide 18: Sustained financial performance
Sustained financial performance 65% 65% 65% 65% 10-year 63% CAGRs 62% 62% 60% 60% 59% Total 1 362 shareholder 1 194 return³: 1 045 1 033 17.3% 886 776 774 754 Diluted HEPS: 679 664 637 13.5% 575 502 490 450 445 439 380 Dividend per 322 272 share: 2016¹ 2017¹ 2018¹ 2019 2020 2021 2022 2023 2024 2025
Slide 19: Continued share price outperformance
0 100 200 300 400 500 600 Sep-2015 Dec-2015 Ma r-20 16 Jun-2016 Sep-2016 Dec-2016 Ma r-20 17 Jun-2017 Sep-2017 Dec-2017 Ma r-20 18 Jun-2018 Sep-2018 Clicks Group share price Dec-2018 Ma r-20 19 Jun-2019 Sep-2019 Dec-2019 Ma r-20 20 Jun-2020 Sep-2020 Dec-2020 Ma r-20 21 Jun-2021 Sep-2021 Dec-2021 Ma
Slide 20: Trading Performance
03 Trading Performance Bertina Engelbrecht 20
Slide 21: Clicks business review
Clicks business review Clicks Group Annual Results 2025 21
Slide 22: Retail sales performance
Retail sales performance % change % contribution Pharmacy 6.9 26.8 Front shop health & baby 8.0 25.6 Beauty & personal care 7.4 32.5 General merchandise 4.4 15.1 Total turnover 7.0 100.0 • % changes exclude Unicorn Pharmaceuticals turnover in FY2024 • Comparable stores turnover growth of 4.7% (exclu
Slide 23: Market shares
Market shares % 2025 2024 Health Retail pharmacy* 24.0 23.8 Front shop health** 33.1 33.4 Baby** 23.1 22.3 Beauty Skincare** 43.8 43.6 Haircare** 32.8 32.8 Personal care** 22.7 22.1 General merchandise Small electrical appliances** 18.7 19.1 * Per IQVIA (Private Retail Pharmacy S1-6) (restated) ** P
Slide 24: Performance and strategy
Performance and strategy • Maintaining value Clicks price index* vs: • Price competitive with Retailer A 96.9 Retailer B 98.4 all national retailers Retailer C 98.2 • Promotional sales +12.4% Retailer D 99.0 to 47.0% of turnover * Excluding all promotional pricing, bulk deals and 3 • In pharmacy, ge
Slide 25: Performance and strategy
Performance and strategy • Differentiating our product offer • R9.7bn sales of private label and exclusive brands • Private label +10.7% to 25.9% of sales (front shop 30.6%, pharmacy 12.3%) • Six private label products voted SA Product of the Year in their categories • Clicks Baby standalone stores
Slide 26: Performance and strategy
Performance and strategy • Engaging customers through personalisation • 12.6m active ClubCard members, 82.6% of sales • Most used loyalty programme* in SA • Online sales up 15.9%; online purchases and ‘research online purchase offline’ (ROPO) increased to 4.1% of sales • LEAP pharmacy management sys
Slide 27: Performance and strategy
Performance and strategy • Extending convenience Format Total Convenience 764 • 990* Clicks stores and 1 UniCare store Destination 227 with 780 pharmacies and 225 clinics Total 991 • 53.2% of population < 5.0km of a pharmacy • Starting rollout of UniCare specialised format – two greenfield sites and
Slide 28: UPD business review
UPD business review Clicks Group Annual Results 2025 28
Slide 29: Fine wholesale turnover
Fine wholesale turnover 58.4% • Wholesale turnover up 5.2% Clicks (+9.5%) • Benefit of increased Clicks 36.2% Private Hospitals pharmacy openings; purchasing (+1.4%) compliance > 98% 5.4% • Hospital volumes +8.8% Independent Pharmacies and • Wholesale market share down other Channels (-10.7%) from 2
Slide 30: Review of the year
Review of the year • Total managed turnover +2.0% to R30.5bn • Generic medicines 75.7% of volumes • Excellent cost management post systems implementation, aided by solar, batteries and EVs • SAP and WMS rolled out successfully to seven distribution clients – remaining clients to be completed by Marc
Slide 31: Strategy and outlook
04 Strategy and outlook Bertina Engelbrecht 31
Slide 32: Outlook
Outlook • Macro-economic indicators improving, yet the consumer remains constrained • The group is well positioned due to: • Competitive advantage in defensive health and beauty sectors – with market-leading shares in core retail categories and in pharmaceutical wholesale and distribution • Long-ter
Slide 33: Outlook (continued)
Outlook (continued) • Leveraging investments in LEAP pharmacy management system, UniCare, Sorbet and ARC Stores • Medium-term target of 1 200 Clicks stores • Plan to open 40 - 50 stores and pharmacies per year • Roll out of 10 - 15 UniCare specialised pharmacy format • Target of 35% private label &
Slide 34: Questions
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Slide 35: Disclaimer
Disclaimer Clicks Group has acted in good faith and has made every reasonable effort to ensure the accuracy and completeness of the information contained in this presentation, including all information that may be defined as 'forward-looking statements' within the meaning of United States securities