EL7.AI
StocksMedium•22 October 2026•
2 min read

Clicks shares fall 4.86% as trading margin narrows despite annual sales growth

Key Facts

1Clicks' annual sales rose 5.4% to exceed 50 billion rand for the first time.
2The group's trading margin fell by 10 basis points to 9.7%.
3Trading profit at the pharmaceutical distribution unit fell 10.4% in financial year 2026.
4The annual dividend increased 4.4% to 925 cents per share.
5Clicks plans capital expenditure of 1.5 billion rand in financial year 2027.

Clicks Group reported a 5.4% rise in annual sales to more than 50 billion rand for the first time, in financial year 2026 results that also showed a decline in its trading margin and pharmaceutical distribution earnings. According to the results announcement, the group's trading margin fell by 10 basis points to 9.7% during the financial year. Trading profit at pharmaceutical distribution unit UPD fell 10.4%, as the group reached the new annual sales milestone. Clicks meanwhile announced a 4.4% increase in its total annual dividend to 925 cents per share. In trading, a later data snapshot on Investing.com showed Clicks shares down 4.86% during the results session, at the displayed update time of 09:41:30.

Clicks said the business environment during the financial year was marked by "pressure on consumer spending and aggressive discounting by competitors", conditions that accompanied the group's annual sales growth. The company had reported an 8.1% rise in diluted headline earnings per share in its results for the six months ended February 2026. In the previous financial year, ended August 2025, the same measure grew 14.1%, according to Clicks' results announcement for that year. On operations, the company said when announcing its first-half results that implementation of a warehouse management system at its Cape Town distribution centre had been delayed. It said the delay affected sales by reducing product availability, noting that the impact was evident "particularly during the festive season".

As part of its expansion, Clicks announced a deal in September to increase its stake in luxury beauty retailer ARC Store to 61%. The deal includes the acquisition of an additional 35.3% stake for 507 million rand and is subject to competition authority approval, according to a group statement. For financial year 2027, Clicks said in its results presentation that it plans capital expenditure of 1.5 billion rand. The results presentation also includes a plan to open between 40 and 50 stores annually. The group's announced plans combine increased ownership in the luxury beauty business, expansion of its store network and capital expenditure scheduled for the next financial year.