Business model
Inputs
Capital resources and relationships applied in the group’s business activities to create value for stakeholders.

(Measured at the end of the 2024 financial year)
Financial
capital
The financial resources received from providers of capital and deployed by the group
  • Equity of R6.3bn
  • Cash resources R2.7bn
  • Borrowing facilities R2.6bn
  • Working capital inflow of R99.4m

Shareholders

Regulators

Manufactured
capital
The infrastructure used in the selling and distribution of merchandise, including stores, pharmacies, distribution centres, the group’s head office and online store
  • 1 002 stores* trading in five countries
  • E-commerce capability
  • 720 pharmacies
  • 206 clinics
  • 8 distribution centres located in 5 major provinces

* Total stores include Clicks + The Body Shop + Sorbet corporate salons

Customers

Suppliers

Employees

Human
capital
The competency, capability and experience of the board, management and employees
  • 19 621 permanent employees
  • 95.2% black and 62.1% female employees
  • Extensive investment in training and development
  • Company-funded healthcare cover available to all employees

Employees

Regulators

Intellectual
capital
The collective knowledge and expertise across the business as well as the intellectual property of the group which provide a competitive advantage
  • Brand equity in well-established and market-leading brands Clicks, The Body Shop, Sorbet and UPD
  • Extensive range of private label products
  • Clicks ClubCard is one of South Africa’s largest loyalty programmes

Employees

Social and
relationship capital
Relationships with stakeholders influencing the business, primarily customers, employees, suppliers, shareholders, government and communities
  • 11.8m Clicks ClubCard loyalty members
  • New Clicks Foundation funds of R166m
  • Community support through social investment programme and Helping Hands Trust
  • Listing portal for small and medium-sized suppliers
  • Small enterprise owner driver scheme contracted to UPD

Shareholders

Customers

Employees

Suppliers

Regulators

Natural
capital
Environmental resources applied and utilised in the business. The group’s operations have a low environmental impact and therefore use limited natural capital
  • Sustainable materials used in products and packaging
  • Group-wide recycling programme
  • R105m invested in alternative energy

Customers

Employees

Regulators

Operating environment
1
Constrained consumer spending
2
Increasingly stable social and political environment following the national elections and formation of the Government of National Unity
3
Moderating inflation rate is positive for further interest rate relief for consumers
4
Improving consumer confidence levels in the latter stages of the financial year
5
Increasing consumer awareness of sustainable consumption and packaging
Our operating model
Clicks Group’s strategy is realised through a value-adding retail-led business model which appeals to the group’s predominantly female customer base.

Customer care

Customer care from engaging and knowledgeable staff in the front shop and pharmacy.

Convenience

An extensive store footprint and pharmacy network in convenient locations allows for easy access to customers, supported by an online store and national pharmacy delivery service.

Differentiation

The product offering is differentiated through a wide range of private label and exclusive brands. Private label scheduled medicine ranges offer customers choice for quality generic medicine at a lower price.

Rewards

ClubCard enables Clicks to personalise engagement and communication with customers, supporting the aim of the loyalty programme to increase basket size and value, and frequency of shopping.

Value

Consistently good value-for-money products delivered through competitive prices and effective promotions.

Outcomes
The group’s performance over the past year resulted in a net increase in the value of all capitals except for natural capital where value was eroded owing to the consumption of resources in the production, packaging, distribution and sale of merchandise.
Financial
capital
  • Group diluted HEPS up 14.3%
  • Dividend of 776cps
  • Return on equity 46.4%
  • Cash generated by operations R6.0bn
  • R2.5bn returned to shareholders in dividends and share buybacks
  • Reinvested R891m in capital expenditure

Manufactured
capital
  • Opened net 51 Clicks stores
  • Opened net 9 pharmacies
  • 51% of customers live within 5.0 km of a Clicks pharmacy
  • 2.4m social media followers

Human
capital
  • R4.9bn paid to employees
  • 6 014 employees trained
  • R185m invested in employee training and development
  • 67% black and 44% female directors

Intellectual
capital
  • Retail pharmacy market share 24.2%
  • Private pharmaceutical wholesale market share 26.7%
  • Constituent of FTSE/JSE Top 40 Index
  • Clicks private label sales account for 25.4% of total sales in Clicks

Social and relationship
capital
  • R780m in cashback paid to ClubCard members
  • R1 068m paid in taxes in all countries of operation
  • R1 330m paid to suppliers of goods and services, including landlords
  • R118.5m invested in enterprise and supplier development programmes
  • R16.1m paid to owner drivers
  • R28.6m invested in socio-economic development programmes
  • 35 bursaries* awarded
  • Level 3 BBBEE rating
  • Constituent of FTSE4Good Index

* Subsequent to the 2024 year-end, an additional 56 bursaries were paid, bringing the FY2024 total to 91 bursaries.

Natural
capital
  • Total carbon emissions 150 528 tonnes CO2e
  • Electricity consumption non-renewable energy 108 895 MWh
  • Produced 5 135 MWh renewal energy
  • Total water consumed 95 028 kl
  • Waste recovered for recycling 4.2 million kg

Outputs

R45.4bn

Group turnover

 

R34.8bn

Cost of merchandise sold

 

R4.2bn

Trading profit

 

150 528

Carbon emissions (tonnes CO2e)

Material trade-offs of capitals

In delivering on the group’s strategic objectives, management aims to balance and optimise the trade-offs between capitals to ensure long-term growth and sustainability.

While the commitment to investing in manufactured, intellectual, human, and social and relationship capitals erode financial capital in the short term, the long-term benefits are reflected in the group’s industry-leading financial and operating metrics and sustained shareholder value creation.

Limiting the environmental impact of the operations to reduce the rate at which natural capital is depleted has a significant impact on financial capital in the short to medium term but should deliver the desired long-term benefits as the group ultimately moves towards carbon neutrality.

Constraints on capitals

The key constraints encountered during the year related to manufactured capital.

  • The expansion of the Clicks pharmacy network was adversely impacted by the Department of Health placing a moratorium on Clicks applying for new retail pharmacy licences. This related to the Constitutional Court ruling preventing Clicks from owning the manufacturing pharmacy licence of Unicorn Pharmaceuticals (Unicorn). Following the sale of Unicorn and Clicks’ subsequent compliance with the court ruling, the licence application process resumed. The limitation on pharmacy licence applications resulted in Clicks opening only net nine pharmacies over the past year relative to the planned 40 to 50 pharmacies.
  • The weak economic environment and high energy, food and borrowing costs constrained consumer disposable income which negatively affected discretionary retail spending.
  • While load shedding negatively impacted trading hours and shopping patterns in the first half of the year, the suspension of power outages from late March 2024 meant that the electricity supply was no longer a constraint to trading.

The group has no financial capital constraints owing to the strong cash flows generated by the operations and access to borrowings. Should these financial resources prove insufficient, the group’s strong balance sheet will enable management to access further loan funding or raise capital through the issue of shares.

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