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2022-03-25

Riot claim to boost Clicks' earnings

A payout from insurer Sasria for the July riots is likely to boost Clicks’ earnings by more than 20%, the pharmacy retailer said on Thursday (24/03/2022)


Penelope Mashego | Fin24

Clicks is one of many South African companies that were impacted by the unrest that saw people loot and damage stores and businesses in parts of KwaZulu-Natal and Gauteng.

The group has since made a R726 million claim to the South African Special Risks Insurance Association (Sasria), for lost stock and replacement of fixed assets.

The first payout of R217 million came in September 2021 and a second of R250 million in October. 

In a trading statement for the six months ended 28 February 2022, Clicks said it would account for the second interim insurance payment in its results for the half-year period.

The retailer added that the payment is likely to increase its earnings per share for the six months by 64.2 cents and its headline earnings per share by 38.3 cents. Clicks anticipates an earnings jump of more than 20% due to the inclusion of the payout.

The group expects its total earnings per share to grow between 30% and 40% to (466.6 cents to 502.5 cents) and its headline earnings per share to increase between 20% and 30%, up to 481.8 cents.

"Subsequent to the half-year ended 28 February 2022, Sasria has advised the group that a full and final insurance settlement of R317 million (including VAT) relating to the civil unrest insurance claim will be made during March 2022," said Clicks. 

The payment will be accounted for in its annual results for the year ending 31 August 2022, said Clicks.

The retailer will release its interim results next month.

 


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