Our opinion on the current state of CLICKS(CLS)Clicks (CLS) describes itself as a retail-led healthcare group and operates several well-known brands, including Clicks, GNC, and The Body Shop. The Clicks chain has 782 stores, of which 585 include pharmacies, making it the largest pharmacy chain in Southern Africa. While more retail outlets are incorporating pharmacies, Clicks' main competitor remains the listed Dis-Chem. One historical drawback for the company was its involvement with the now-closed 59 Musica stores.
On 10th May 2021, Clicks announced the acquisition of Pick n Pay's pharmacy business, which included 25 in-store pharmacies. These have since been rebranded as Clicks stores, further solidifying the company's dominance in the pharmacy retail sector.
Technically, Clicks has been a standout performer on the JSE over the past two decades, with its share price rising by more than 2500% since its listing—a remarkable achievement compared to the JSE's average over the same period. Clicks is considered one of the best blue-chip shares on the JSE. It has demonstrated resilience through economic downturns and continues to perform well, proving itself to be more or less recession-proof.
In its results for the year to 31st August 2024, the company reported a 9.2% increase in group turnover and a 14.2% rise in headline earnings per share (HEPS). The company highlighted, "The Clicks chain recorded market share gains across all core health and beauty product categories, with the Clicks ClubCard loyalty programme growing to 11.8 million active members."
In an update for the 20 weeks to 12th January 2025, Clicks reported turnover growth of 8.1% and the granting of 27 new retail pharmacy licences. The company stated, "Sales in comparable stores increased by 5.9% (2024: 8.4%), with selling price inflation averaging 3.5% (2024: 7.5%) and volume growth of 2.4% (2024: 0.9%) for the period."
Despite its high price-to-earnings ratio (P/E) of 30.02, Clicks remains a compelling medium-term investment. Its consistent performance and resilience make it a "must-have" for private investors. Often referred to as a "diagonal" share, its long-term price chart has a consistent upward trajectory, moving from the bottom left-hand corner to the top right-hand corner of the screen. Clicks should be considered a staple in any private investor's portfolio and is an excellent candidate for accumulation during periods of market weakness.
