Fewer colds and flus last winter bad news for Clicks
Lipstick compensated for depressed medicine sales, with the company raising its dividend 18%
Clicks complained that “lower incidence of colds and flu compared to last winter depressed medicine sales”, but still managed to up its dividend by 18%. The group’s overall revenue grew by 9.3% to R31bn and its net profit by 15.5% to R1.5bn, its results for the year to end-August released on Thursday morning said. Once again illustrating the “lipstick index” — a theory proposed by Leonard Lauder that cosmetic sales rise in recessions — the group said its flagship Clicks chain along with its The Body Shop, GNC and Claire’s franchises grew sales 11.7%. Clicks declared a final dividend of 277.5c, taking its total for its 2018 financial year to R3.80, an 18% increase on the previous year’s R3.22. It opened a record 41 new stores during its 2018 financial year, taking its total to 663. It opened a net 37 pharmacies during the year to end-August, taking its total pharmacy network to 510. The group said it planned to open between 25 and 30 new Clicks stores and 30 to 35 new pharmacies duri...
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