Clicks H1 profit beats estimates, suspends dividend

South African drugstore chain Clicks Group reported a better-than-expected rise in half-year earnings, driven by strong sales from both the retail and distribution businesses as well as cost control measures.

Diluted headline earnings per share for the six months ended February 29 rose to 338 cents from 300.1 cents in the comparable prior period, beating analysts’ expectations of a 11.3% rise.

“Owing to the economic upheaval arising from the Covid-19 pandemic, the board has decided to preserve cash and consider an annual dividend at year-end once there is greater certainty,” it said in a statement.