Clicks Group,a South African leading pharmacy chain,health,beauty and wellness retailer has reported positive financial results for the year ended on 31 August 2023.

According to sens announcements,group turnover increased by 8.2% (excluding vaccinations) to R41.6 billion (up 5.1% including vaccinations),with retail turnover increasing by 12.2%.Distribution turnover grew by 1.5% for the year as UPD was impacted by lost sales opportunities to Clicks and private hospitals during the systems implementation in the first half,lower demand from independent pharmacies and the shift of products within UPD from the preferred supplier to the bulk distribution channel.

During the financial year,the Group has finalised three strategic acquisitions totalling R320 million to cement its position in health and beauty retailing.

The Group purchased Sorbet beauty salon franchise chain which has 194 outlets,and M-Kem a long-established 24-hour pharmacy which operates in the Western Cape,and also bought 180 Degrees a pharmacy software development company.

The Group's adjusted total income grew by 10.8% to R12.2 billion(up 7.6% including the insurance recoveries).

The company's cost were very high in the reported period due to higher insurance premiums and diesel costs which increased by 11.4%.

The Group has spent around R53.8 million purchasing diesel which is needed to operate generators during load shedding.

The Group's adjusted operating profit excluding the insurance recoveries increased by 9.0% to R3.6 billion(decreased by 0.7% including insurance recoveries) while the group's adjusted operating margin increased by 30 basis points to 8.7%.

The Group's total headline earnings,including insurance recoveries in the prior year,grew by 0.8% to R2.5 billion.

The Group's basic earnings per share declined by 3.5% to 1 042 cents with diluted HEPS increasing by 1.1% to 1 045 cents.

The group has spent R930 million in the reported period opening new stores and pharmacies,store refurbishments,supply chain and information technology.

The Group has opened its 850th store and 700th pharmacy during the year.

According to sens announcements,the group returned R2.3 billion to shareholders in dividend payments of R1.6 billion and share buybacks of R704 million.At year end the group held cash resources of R2.5 billion.Shares totaling R392 million have been repurchased post the year end.

The Group is planning to 40-50 new stores and 40-50 pharmacies for the financial year and remains committed to its longer-term target of 1 200 stores.

The Group has put aside a capital investment of R880 million for the 2024 financial year.

The Group is planning to use R487 million for new stores and pharmacies and the refurbishment of 50-60 stores.

The remaining R393 million will be invested in supply chain,technology and infrastructure.

The Group's shareholders will receive a dividend of 494.0 cents per share which has increased a little bit compares to the previous year of 2022 which was 457.0 cents per share.

The Group mentioned that the source of the dividend will be from distributable reserves and paid in cash.

Clicks was founded 1968,is listed on the Johannesburg Stock Exchange(JSE) and is one of the top 40 companies in the country and is featured in the FTSE/JSE Top 40 Index for six years now.

By October 26,its share price stood on R261.75(ZAR) and has market capitalisation of R62.74 billion(ZAR).