Report
Victor Dima
EUR 7.42 For Business Accounts Only

Strong Health & Beauty sales growth and cost discipline in UPD help solid group HEPS growth of 15.3% y/y

​Revenue: +8.5% y/y to ZAR 13.1bn, in line with ACe (+8.4% y/y to ZAR 13.1bn) accelerating from 5.9% y/y in H2 16A. Clicks Chain revenue grew 13.1% y/y up from 12.9% y/y in H2 16A and Distribution revenue accelerated to 7.5% y/y from 0.4% y/y in H2 16A.

EBIT: +14.8% y/y to ZAR 840m (ACe: +10.7% to ZAR 810m) driven by solid growth in Health and Beauty segment and improving top line momentum and cost discipline in UPD. Group EBIT margin expanded by 35bps y/y to 6.4% (ACe: +13bps y/y to 6.2%).

HEPS: +15.3% y/y to ZAR 2.47/share ahead of ACe: +11.5% y/y to ZAR 2.39/share. CLS guides FY 17e HEPS growth to be between 11% y/y and 16% y/y, but we expect it to be closer to the upper end of the guided range. 

Underlying
Clicks Group Limited

Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

Analysts
Victor Dima

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