JOHANNESBURG (Reuters) – South Africa’s Clicks Group reported a 14.eight p.c upward push in half of-year earnings on Thursday as health and wonder merchandise appealed to thrifty buyers, and flagged stable fat-year earnings development.
South African clients are feeling the impact of low development in disposable earnings, diminutive job advent and tight credit situations however promotional gives, competitive pricing and purchasing and selling at some level of the Christmas interval buoyed sales.
“The enlargement turned into as soon as driven primarily by buoyant Christmas purchasing and selling, appealing promotional gives and competitive pricing,” Chief Govt David Kneale acknowledged in a disclose.
Health and wonder sales rose by 14.three p.c which contributed to Clicks gaining market fragment in all product categories, he acknowledged.
The retailer forecast earnings development of between 12 and 17 p.c in the fat-year to August.
For the six months to the conclude of February, diluted headline earnings per fragment rose to 266.three cents from 232 cents.
Group turnover increased by 10 p.c to 14.four billion rand ($1 billion), whereas retail sales grew by thirteen.2 p.c.
Shareholders will receive an intervening time dividend of 102.5 cents per fragment, up 16.5 p.c, Clicks acknowledged.
Clicks shares rose zero.16 p.c to 195.ninety five by 0920 GMT.
Clicks is making a guess on the persisted resilience of its core health and wonder merchandise, and acknowledged it might perhaps per chance well delivery 40 original stores at some level of the country, as adverse to the earlier notion to magnify its stores by 25 to 30 stores.
The retail community will be investing Seven hundred million rand into original stores, infrastructure and files abilities this year, acknowledged Kneale.
($1 = eleven.9365 rand)
Reporting by Nqobile Dludla and Patricia Aruo; Bettering by James Macharia