Johannesburg - Clicks Group, a South African beauty and pharmaceutical retailer, posted full-year profit that met analyst estimates after opening more stores and offering discounts to help offset weak consumer spending.
Operating profit in the year through August rose 10 percent to 1.2 billion rand, the Cape Town-based company said in a statement today.
That compares with 1.19 billion-rand estimate of seven analysts surveyed by Bloomberg.
Sales advanced 9.4 percent to 20.2 billion rand and the company raised the dividend by 13 percent to 1.90 rand per share.
Sales rose with “a stronger second-half performance” that was “driven mainly by volume gains through an effective promotional strategy,” the company said.
Clicks opened 22 new stores, bringing its total to 464 outlets.
South African retailers have struggled this year as accelerating inflation and unemployment of more than 25 percent constrain consumer spending.
Clicks shares have gained 2.7 percent this year, compared with a 5.3 percent rise on the FTSE/JSE Africa General Retailers Index. - Bloomberg News