Clicks Group Limited · JSE:CLS
Clicks — FY2026 Earnings Presentation
42 slides from Clicks's earnings presentation, October 2026
Slide 1: Reviewed Annual Group Results for the year ended 31 August 2026
Reviewed Annual Group Results for the year ended 31 August 2026
Slide 2: Contents and key features
Contents Financial summary 2 Key features Commentary 3 Group turnover up Independent auditor’s review 5 report on condensed consolidated financial statements 5.4% Consolidated statement of 6 Trading margin down 10 bps to comprehensive income Consolidated statement of financial position 7 9.7% Consol
Slide 3: Clicks Group at a glance
As a leader in the healthcare market Clicks Group is committed to increasing access to affordable healthcare for all South Africans. Clicks is the country’s leading health, wellness and beauty retailer and foremost pharmacy chain, with an expanding network of over 1 100 stores and 840 pharmacies sup
Slide 4: Financial summary
2 Financial summary Year to Year to 31 August 31 August % 2026 2025 change Consolidated statement of comprehensive income Turnover R’000 50 414 003 47 828 079 5.4% Gross profit R’000 11 701 120 11 399 653 2.6% Total income R’000 15 614 719 14 860 861 5.1% Headline earnings R’000 3 323 001 3 234 282
Slide 5: Commentary
3 Commentary Overview Distribution turnover grew by 9.2%, mainly driven by a 19.3% increase in revenue from preferred bulk contracts. In an environment of constrained consumer spending and aggressive competitor discounting, group turnover increased Total income grew by 5.1% to R15.6 billion. The ret
Slide 6: Commentary continued: Outlook and final dividend
4 Commentary continued Outlook Final dividend The retail trading environment is expected to remain highly The board of directors has approved a final gross ordinary competitive, with sustained discounting as consumers continue dividend for the period ended 31 August 2026 of 667.0 cents to face signi
Slide 7: Independent auditor's report on review of condensed consolidated financial statements
5 Independent auditor’s report on review of the condensed consolidated financial statements To the shareholders of Clicks Group Limited Conclusion Based on our review, nothing has come to our attention that Introduction causes us to believe that the accompanying condensed We have reviewed the accomp
Slide 8: Consolidated statement of comprehensive income
6 Consolidated statement of comprehensive income Reviewed Audited Year to Year to 31 August 31 August % R’000 2026 2025 change Revenue 54 408 683 51 426 992 Turnover 50 414 003 47 828 079 5.4% Cost of merchandise sold (38 712 883) (36 428 426) 6.3% Gross profit 11 701 120 11 399 653 2.6% Other incom
Slide 9: Consolidated statement of financial position
7 Consolidated statement of financial position Reviewed Audited As at As at 31 August 31 August R’000 2026 2025 ASSETS Non–current assets 9 165 878 8 351 031 Property, plant and equipment 3 328 858 3 087 950 Right-of-use assets 4 062 428 3 685 047 Intangible assets 1 057 260 941 551 Goodwill 240 295
Slide 10: Consolidated statement of changes in equity
8 Consolidated statement of changes in equity Number of shares Share Share R’000 ’000 capital premium Audited Balance at 1 September 2024 238 062 2 381 1 064 953 Transactions with owners, recorded directly in equity Dividends paid to shareholders – – – Shares repurchased and cancelled (2 131) (21) –
Slide 11: Statement of changes in equity (continued)
9 Foreign Cash flow Cost of currency Equity attributable hedge hedging translation Distributable to owners of the Non-controlling Total reserve reserve reserve reserve parent interest equity (8 532) (4 950) (8 833) 5 240 520 6 285 539 – 6 285 539 – – – (1 911 348) (1 911 348) – (1 911 348) – – – (75
Slide 12: Consolidated statement of cash flows
10 Consolidated statement of cash flows Reviewed Audited Year to Year to 31 August 31 August R’000 2026 2025 Cash effects from operating activities Profit before working capital changes (refer note 1) 6 921 822 6 533 617 Working capital changes (refer note 2) (652 278) 72 848 Cash generated by opera
Slide 13: Notes to the statement of cash flows
11 Notes to the statement of cash flows Reviewed Audited Year to Year to 31 August 31 August R’000 2026 2025 Cash flow information 1. Profit before working capital changes Profit before tax 4 524 106 4 433 428 Adjustment for: Non-cash flow items: Depreciation and amortisation 2 053 162 1 881 982 Fai
Slide 14: Segmental analysis
12 Segmental analysis For the year to 31 August 2026 Retail1 Distribution Reviewed Audited Reviewed Audited 31 August 31 August 31 August 31 August R’000 2026 2025 2026 2025 Statement of financial position Property, plant and equipment 2 930 474 2 707 259 398 384 380 691 Right-of-use assets 4 054 20
Slide 15: Segmental analysis (continued)
13 Intragroup elimination Total operations Reviewed Audited Reviewed Audited 31 August 31 August 31 August 31 August 2026 2025 2026 2025 – – 3 328 858 3 087 950 – – 4 062 428 3 685 047 – – 1 057 260 941 551 – – 240 295 215 371 (40 485) (58 846) 8 689 968 7 818 704 (1 185 663) (1 078 610) 3 947 173 3
Slide 16: Accounting policies and notes
14 Accounting policies and notes 1.1 The condensed consolidated financial statements for the year ended 31 August 2026 have been prepared in accordance with the framework concepts and the measurement and recognition requirements of IFRS ® Accounting Standards as issued by the International Accountin
Slide 17: Revenue (continued) and headline earnings reconciliation
15 1.5 Revenue (continued) 31 August 31 August % R’000 2026 2025 change Distribution turnover can be further disaggregated between the following categories: Fine wholesale 14 685 836 13 888 770 5.7% Clicks 8 855 699 8 116 146 9.1% Private hospitals 5 051 602 5 024 752 0.5% Independent pharmacies and
Slide 18: Store footprint and analysis of shareholders
16 Store footprint The Body Total Clicks Shop KwaMakhi UniCare Sorbet retail Number of stores at 31 August 2026 1 031 53 3 5 18* 1 110 as at 31 August 2025 990 55 – 1 14 1 060 opened/acquired 48 – 3 4 5 60 closed (7) (2) – – (1) (10) Presence in Clicks stores at 31 August 2026 257 Number of pharmaci
Slide 19: Definitions
17 Definitions Capital expenditure International Financial Reporting Interpretations Return on invested capital (“ROIC”) Maintenance capital expenditure Committee (“IFRIC”) of the IASB. Clicks Group’s excluding the impact of IFRS 16 Capital expenditure incurred in replacing condensed consolidated fi
Slide 20: Presentation: Annual results for the year ended August 2026
18 Presentation 2026 Annual results for the year ended 31 August 2026 Contents 01 Review of the year 02 Financial results 03 Trading performance 04 Strategy and outlook 05 Questions Clicks Group Annual Results 2026
Slide 21: Review of the year
19 01 Review of the year Bertina Engelbrecht Review of the year • Extremely tough and competitive consumer environment • Opened 1 031st Clicks store and 835th Clicks pharmacy • 13.1m active ClubCard members • Opened 4 additional UniCare sites • Launched KwaMakhi, a township convenience retail brand
Slide 22: Financial Results: Key features
20 Presentation 02 Financial Results Gordon Traill Key features Turnover up Total income margin Trading margin Diluted HEPS up 5.4% down from 31.1% to down from 9.8% to 4.4% Retail turnover up 4.2% 31.0% 9.7% to 1 422 cps UPD reported turnover up 9.2% Cash generated Returned to Return on equity Tota
Slide 23: Turnover and total income
21 Turnover % same % stores % R’m 2026 2025 change growth inflation Retail 39 126 37 554 4.2 1.8 1.5 Distribution 20 377 18 658 9.2 0.6 Intragroup turnover (9 089) (8 384) 8.4 Total group 50 414 47 828 5.4 1.2 • Retail value growth impacted by lower inflation, WMS system rollout in Western Cape in H
Slide 24: Trading expenditure – Retail and Distribution
22 Presentation Trading expenditure – Retail % R’m 2026 2025 change Depreciation – PPE 645 598 7.9 Depreciation – ROU asset 1 228 1 133 8.4 Occupancy costs 225 210 7.0 Employment costs 5 025 4 897 2.6 Other costs 2 716 2 483 9.4 Total retail costs 9 839 9 321 5.6 % of turnover 25.1% 24.8% Finance co
Slide 25: Trading profit and growth in turnover, profit and margin
23 Trading profit % 2026 2025 R’m 2026 2025 change % margin % margin Retail 4 320 3 932 9.9 11.0 10.5 Distribution 560 625 (10.4) 2.7 3.3 Intragroup 18 122 Total group 4 898 4 679 4.7 9.7 9.8 • Retail margin in FY2025 was 10.8% including unwind of Unicorn intragroup profit Clicks Group Annual Result
Slide 26: Inventory and cash management
24 Presentation Inventory Days in stock Inventory (R’m) 2026 2025 2026 2025 % change Retail 79 77 5 951 5 613 6.0 Distribution 50 45 2 780 2 265 22.7 Intragroup inventory (41) (59) Total group 82 78 8 690 7 819 11.1 • Retail inventories impacted by new stores across all brands, and new pharmacies •
Slide 27: Capital returned to shareholders and capital expenditure
25 Capital returned to shareholders 4 000 R’m Total returned to date since 2006 of R25.7 billion 3 500 (dividends R16.6 billion + 3 000 R9.1 billion buybacks at an average price of R53.60) 2 500 2 000 1 500 1 000 500 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2
Slide 28: Continuing investment and medium-term financial targets
26 Presentation Continuing investment in core operations 1 453 R’m 90 1 166 985 84 583 930 889 838 88 159 59 403 111 298 251 262 270 780 679 579 599 457 509 2022 2023 2024 2025 2026 2027 planned Stores Retail IT & Infrastructure UPD Clicks Group Annual Results 2026 17 Medium-term financial targets A
Slide 29: Trading Performance
27 Sustained financial performance 65% 65% 65% 65% 65% 10-year 63% CAGRs 62% 62% 1 422 60% 60% Total 1 362 shareholder 1 194 return³: 1 045 1 033 11.4% 925 886 776 774 754 Diluted HEPS: 679 664 637 12.5% 575 502 490 450 445 380 Dividend per 322 share: 2017¹ 2018¹ 2019 2020 2021 2022 2023 2024 2025 2
Slide 30: Retail Review: Retail sales performance
28 Presentation Retail Review Retail sales performance % change % contribution Pharmacy 7.3 27.6 Front shop health & baby 2.2 25.1 Beauty & personal care 4.5 32.6 General merchandise 1.3 14.7 Total turnover 4.2 100.0 • Comparable stores turnover growth of 1.8% • Inflation 1.5% • Volume growth of 0.3
Slide 31: Retail market shares and revitalised ClubCard programme
29 Retail market shares % 2026 2025 Health Retail pharmacy* 24.7 24.1 Front shop health** 32.6 33.1 Baby** 23.0 23.1 Beauty Skincare** 42.3 43.3 Haircare** 32.6 32.7 Personal care** 23.1 22.6 General merchandise Small electrical appliances** 19.7 18.7 * Per IQVIA (Private Retail Pharmacy S1-6) (rest
Slide 32: Revitalised ClubCard: anchored by health
30 Presentation Revitalised Clicks ClubCard programme Clicks Group Annual Results 2026 25 Anchored by health • 835 Clicks Pharmacies, 225 clinics, 5 UniCare specialist pharmacies • 54.2% of households live within 5.0km of a Clicks store • Private label 12.3% of pharmacy • Awaiting approval of Unicor
Slide 33: UniCare 24-hour pharmacies and Sorbet Group
31 UniCare 24-hour pharmacies • 24-hour dispensary ensures patients can access prescriptions, OTC medications and healthcare advice at all hours • Specialised services include wound care, diabetes clinic, vaccinations & travel clinic, IV clinic, orthopaedic support, blister packing and after-hours d
Slide 34: Beauty – ARC Store and differentiated offer
32 Presentation Beauty – ARC Store • Premium beauty market is cR6bn pa • Currently online and 11 stores, with potential to reach 20 – 25 stores • Focus on millennial & Gen Z customers • R530m in sales in FY2026 with same store sales growth c5 times the market • ARC customer spend in Clicks: R866m in
Slide 35: Convenient access and efficiency through green transition
33 Convenient access • 1 031 Clicks stores and 5 UniCare Format Total stores with 840 pharmacies and Convenience 801 Destination 235 225 clinics Total 1 036 • 270 stores located in low income areas (25.5% of retail turnover) • Online sales up 15.0%; Click & Collect now 30.3% of online sales • Relaun
Slide 36: KwaMakhi – convenience township format
34 Presentation KwaMakhi – convenience township format • KwaMakhi means “at my neighbour’s place” • Market estimated to be worth cR900bn annually • 4 stores in Tembisa, Khayelitsha, Elsies River & Hammanskraal • c350m² in size – no pharmacy/clinic, differentiated branding • Each store employs c6 peo
Slide 37: UPD Review: Review of the year
35 UPD Review Review of the year • Total managed turnover +4.1% to R31.8bn • Generic medicines up from 75.7% to 77.8% of medicine volumes and 58.5% of medicine sales • All UPD sites now ISO:13485 (medical devices) certified • Medical consumables acquisition successfully integrated and offer being ma
Slide 38: Fine wholesale turnover and medical consumables offer
36 Presentation Fine wholesale turnover 60.3% Clicks & • Wholesale turnover up 5.7% UniCare (+9.1%) • Benefit of increased Clicks 35.0% Private Hospitals pharmacy openings; and Medical Consumables (+2.4%) 98% purchasing compliance 4.7% • Hospitals impacted by lack of growth Independent Pharmacies an
Slide 39: Strategy and Outlook
37 04 Strategy and Outlook Bertina Engelbrecht Strategy • The group is well positioned due to: • Competitive advantage in defensive health & beauty sectors with favourable long-term growth drivers • Market-leading shares in core retail categories and in pharmaceutical wholesale and distribution • Or
Slide 40: Outlook
38 Presentation Outlook • The consumer will be severely constrained while the cost of fuel remains elevated and interest rates are higher • The strong Rand has offset pressures to some extent • Expect low selling price inflation to continue, but a second SEP increase of 2.88% has been enacted effect
Slide 41: Questions and Disclaimer
39 05 Questions Disclaimer Clicks Group has acted in good faith and has made every reasonable effort to ensure the accuracy and completeness of the information contained in this presentation, including all information that may be defined as 'forward-looking statements' within the meaning of United S
Slide 42: Corporate information
Corporate information Clicks Group Limited Company secretary Incorporated in the A Barnard, CA (SA) Republic of South Africa E-mail: [email protected] Registration number Auditors 1996/000645/06 KPMG Inc. Income tax number 9061/745/71/8 Principal bankers FirstRand Bank Limited JSE a