Integrated Annual Report 2017

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2017
in review

Strong trading with market share gains in Clicks and UPD
Opened 111 Clicks stores and expanded footprint to 622
7 million active Clicks ClubCard loyalty members
Cash generated by
operations exceeds
R2 billion
Diluted HEPS up
14.5%
to 502 cents
Dividend up
18.4%
to 322 cents per share
Level 5 BBBEE
rating under new codes
First-time inclusion in FTSE4Good Index
R7.5 billion
shareholder value created

Group profile

Clicks Group is a retail-led healthcare group which is listed in the Food and Drug Retailers sector on the JSE.

Founded in 1968, the group has been listed on the JSE since 1996. Following changes in South African legislation in 2003 to allow corporate pharmacy ownership, the group entered the retail pharmacy market with the opening of the first Clicks pharmacy in 2004.

The group is today a leader in the healthcare market where Clicks is the country’s largest pharmacy chain with 473 in-store pharmacies and a 22.2% share of the retail pharmacy market. UPD has a 25.6% share of the private pharmaceutical wholesale market.

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"Clicks produced another strong trading performance, led by pharmacy and front shop health sales. Customers continued to respond positively to the Clicks value promotions and differentiated product ranges as the chain reported strong volume growth while gaining market share in all product categories."

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"UPD delivered double-digit sales and profit growth for the year, driven by good growth in the wholesale business. Reported turnover increased by 11.4% and UPD maintained its market-leading positions in both the pharmaceutical wholesale and bulk distribution markets."

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Leadership

Chairman's Report

Chief Executive's Report

Chief Financial Officer's Report

"In a year marked by significant political instability and uncertainty, deteriorating economic conditions and consequent credit ratings downgrades, financial pressure on South African consumers has continued to intensify."

"Clicks delivered another strong trading performance in tough retail conditions, reporting good volume growth and increased market shares in all product categories. The brand continues to demonstrate its resilience in the current constrained spending environment, with healthcare being a necessity and beauty an affordable luxury."

"Clicks Group delivered another resilient performance in tough retail trading conditions, highlighted by robust health and beauty sales, increased margins, strong cash flows and enhanced returns to shareholders."

"Clicks Group's strategy is to create sustainable long-term shareholder value through a retail-led health, beauty and wellness offering."

The Clicks Experience