Clicks Group Limited
South African health, beauty and wellness retailer, with a pharmaceutical wholesaler (UPD). Revenue grew 5.4% and operating profit 4.7%, so operating margin eased to 9.7% from 9.8%. Dividends and buybacks together were 137% of free cash flow after lease principal.
Revenue
R50.41bn
▲ +5.4% vs FY25
Operating profit
R4.90bn
▲ +4.7% vs FY25
Operating margin
9.7%
▼ from 9.8% in FY25
Cash returned to shareholders
R3.37bn
incl. R1.25bn of buybacks
Total across four areas
30/ 40
Calculated from Clicks' published numbers using fixed thresholds. Not a rating. The previous window (FY21–FY25) scored 33/40.
The score describes how the business has been run and funded, area by area. A higher or lower score is a point of comparison between companies, not a statement that one is better than another.
Most of the fall from 33 comes from the window moving forward, not from FY26 alone. Several results sit close to a band edge, and other reasonable measures give totals between 26 and 31. Every threshold is public in the scoring rubric, so you can check any score yourself.
Operations
Is the business making more from what it sells?
What drives the score
Operating margin 9.7% in FY26 against 8.4% in FY22 (+1.3 pts); revenue grew 6.2% a year.
Comment
Margin rose over the window but slipped from 9.8% in FY25. Gross margin fell to 23.2% from 23.8%, and other income, worth about 80% of operating profit, grew 13%. Retail profit grew 9.9%; UPD profit fell 10.4%.
Liquidity
Does profit turn into cash?
What drives the score
Cash conversion 98% of operating profit in FY26 (74% after lease principal); working capital is about 1.0% of revenue.
Comment
Operating cash flow fell 8.4% as receivables and inventory absorbed cash. The score measures cash before lease principal; after it, conversion was 74% in FY26 and 89% in FY25. Inventory days rose from 67 to 82 (four rises in five years), and payables fund most of the stock.
Solvency
How comfortable is the debt?
What drives the score
Net debt (leases less cash) 0.45× operating profit; interest cover 10.9×. Both trend deductions apply.
Comment
No bank borrowings: debt is lease liabilities. Net debt rose to R2.2bn from R0.8bn as cash fell R955m. Equity fell R51m and interest cover is down 31% since FY22. Net debt including the R507m purchase agreed after year-end would be 0.55×.
Qualitative
Are the habits and disclosures consistent?
What drives the score
Four of five yes/no rules passed (2 points each). Retail is 77.6% of group turnover, above the 50% limit.
Comment
Ordinary dividends rose every year and free cash flow covered them every year. The audit rules are tested on the FY25 audited statements, which are the latest published; they will be re-tested when the FY26 audited statements are released.
Revenue
R50,414m
up 35% since FY21
Operating profit
R4,898m
up 61% since FY21
Operating margin
9.7%
peak 9.8% in FY25
Operating cash flow
R4,803m
down 8% in FY26
Free cash flow after lease principal
R2,469m
down 23% in FY26
Dividends + buybacks
R3,371m
137% of FCF after leases (FY25: 83%)
Net debt (leases less cash)
R2,188m
highest of the six years
Inventory days
82 days
67 in FY21
Intersegment sales of R9,089m are eliminated to reach group revenue of R50,414.0m. Retail earned R4,320m of trading profit and UPD R560m.
Operations
■ Improving, cooler in FY26Liquidity
■ Sound, cash lowerSolvency
▼ Net debt higherClicks is more profitable per rand of sales than six years ago (operating margin 8.2% to 9.7%), but FY26 was its slowest year for operating profit growth (4.7%) and gross margin slipped. Its balance sheet carries no bank debt; the debt is leases.
In FY26 the company paid out R3.37bn in dividends and buybacks, more than the R2.47bn of free cash flow left after lease payments, and met the difference from its cash balance. Whether that suits a given portfolio is a question of individual goals and risk appetite, which this scorecard does not address.
This scorecard presents a descriptive summary of Clicks Group Limited's published financial results for FY2021–FY2026. FY26 figures come from the results announcement of 22 October 2026, which is reviewed, not audited. The business health score is a description of the business based on fixed, published thresholds; it is not a rating, and a higher or lower score does not mean one company is better than another. It does not constitute financial, investment or tax advice, a recommendation to buy, hold or sell any security, or a valuation or price target. Clearview Financial (Pty) Ltd is not a licensed financial services provider.
Holdings: the author holds no shares in Clicks Group. The author previously held Clicks Group shares and has sold the entire position.
Source: Clicks Group Limited results announcements and analyst booklets, FY2021–FY2026 · clicksgroup.co.za
The full report walks through every year of Clicks Group's published results: revenue, margins, segments, cash flow, balance sheet and the share price.
CLEARVIEW FINANCIAL