- 42 stores opened
- 11 stores still closed
- Headline earning per share forecast changed to 0% to 3%
JSE listed, South African leading pharmacy, health, and beauty retailer, Clicks is recovering from the impact of civil unrest on its business operations as evidenced by the re-opening of its 42 stores.
During the civil unrest in KwaZulu-Natal (KZN), 52 stores and The Body Shop Store were looted and vandalised, representing 6% of the Group’s store base.
In a trading update, the Group said they managed to open 34 of the damaged stores by 31 August 2021 and a further 8 stores have since been reopened and currently 11 stores remain closed.
“It is expected that a further 5 will be reopened by the end of the first half of the 2022 financial year and 4 in the second half. The final 2 damaged stores are scheduled to open in the 2023 financial year,” the Group said.
The UPD and Clicks distribution centres in KZN were also looted and damaged and were reopened on 26 July 2021 and 16 August 2021 respectively.
The Group incurred additional costs for private security services to protect the distribution centres as well as air transportation costs to supply medicines from Johannesburg to UPD customers in KZN.
Clicks received its first interim insurance payment of R217 million from SASRIA, which will be accounted for in the 2021 financial year and In terms of International Financial Reporting Standards, the balance of the insurance proceeds is expected to be recognised by the group in the 2022 financial year.
Earlier this year, the Group had forecasted an 8% to 13% increase in diluted headline earnings per share for the financial year ending 31 August 2021 but owing to the impact of the civil unrest and the fact that only 30% of the total SASRIA insurance claim has been accounted for to date, the group is now expecting it to increase by 0% to 3%.
Meanwhile, the Group’s vaccination programme continues to gain momentum and as of 31 August 2021, Clicks was operating 300 vaccination sites and had administered 596 180 vaccinations nationally.
Clicks plans to open a further 268 sites in the coming weeks, with 568 sites expected to be operating by the end of September 2021. This will give the Group capacity to administer approximately 615 000 vaccinations each month.
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