Analysts have commented favourably on New Clicks' switch in emphasis to pharmaceutical business, the interim results and the outlook for the company.
Mark Ansley of Cadiz said: "Clicks has turned in an exceptional performance and is now operating like a finely tuned engine."
He said it had been the group's aim for years to have a mixture of pharmaceutical and beauty products, like comparable firms in the UK, but local legislation had prohibited this until recent years.
It was a good decision to continue to roll out more pharmacies as soon as the firm could secure the services of more qualified staff, who were in short supply at present.
It was also a good strategy to increase the number of products sold under Clicks' private label. It was a way of differentiating its products from those in other shops and gave better growth margins.
Nohenna Vermaak of PSG Tanzanite said the increased emphasis on pharmaceutical business was "a really good move" and the company had achieved a good turnaround in the last few years. The results showed the resilience of Clicks.
Sarah Jane Alexander of Coronation agreed that the group's major expansion into the pharmaceutical business was a very good move.
Both Musica and the Body Shop had done better than she expected. "Management are doing a good job of cost control and the shift of emphasis towards pharmaceutical business is already coming through in increased volumes (of sales).
"This is a very good set of results and the dividend increase is very good," added Alexander. - Audrey D'Angelo
