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We take a look at the latest trading statement by Clicks Group in which it revised upwards their expected profits from an earlier announcement and based on the stock price reaction the market is loving it.
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About Clicks (CLS)
Clicks Group Ltd operates pharmaceutical health and beauty retail stores. The company primarily operates a retail pharmacy chain in South Africa, with a limited number of operations in bordering countries. It is one of the market leaders in the health and beauty stores space in South Africa but they have strong competition in the form of Dis-Chem. See our Clicks vs Dis-Chem article here
Trading Statement released on 7 October 2019
At the time of the release of the group’s interim results on 17 April 2019, shareholders were advised via SENS that diluted headline earnings per share (HEPS) for the year ending 31 August 2019 (“the period”) was forecast to increase by between 10% and 15% over the 2018 financial year.
Following a stronger retail performance by Clicks in the second half, UPD benefiting from gaining new distribution contracts and further improvements in working capital management across the business, the group is revising its earnings forecast range upwards. The directors now expect that diluted HEPS for the period will increase by between 15% and 18% over the 2018 financial year, to between 661.6 and 678.9 cents. Shareholders should note that diluted HEPS for the 2018 financial year was restated to 575.3 cents following the adoption of IFRS 9 and IFRS 15.
Clicks Group’s annual results for the year ended 31 August 2019 will be released on SENS on Thursday, 24 October 2019.
Following a stronger retail performance by Clicks in the second half, UPD benefiting from gaining new distribution contracts and further improvements in working capital management across the business, the group is revising its earnings forecast range upwards. The directors now expect that diluted HEPS for the period will increase by between 15% and 18% over the 2018 financial year, to between 661.6 and 678.9 cents. Shareholders should note that diluted HEPS for the 2018 financial year was restated to 575.3 cents following the adoption of IFRS 9 and IFRS 15.
Clicks Group’s annual results for the year ended 31 August 2019 will be released on SENS on Thursday, 24 October 2019.
Share Price Performance of Clicks (CLS) over the last 5 years
The screenshot below, taken from Sharenet shows the share price history of JSE for the last three years as well as the share price performance over various time periods
The summary below shows the performance of Click's share price over various time periods:
From the above its clear that Clicks has been providing very generous returns for their shareholders over the last 5 years. And added to that its trading at new 52 week highs, which is a clear indication that the short term sentiment and momentum of Clicks (CLS) shares is very positive
- 1 week: 1.43%
- 1 month: 7.64%
- Year to date (YTD): 13.97%
- 1 year: 33.87%
- 3 years: 73.12%
- 5 years: 232.42%
From the above its clear that Clicks has been providing very generous returns for their shareholders over the last 5 years. And added to that its trading at new 52 week highs, which is a clear indication that the short term sentiment and momentum of Clicks (CLS) shares is very positive