Sep 21, 2021

Mawazo Writing Africa

Writing about the main

Hard-hit by July looting, Clicks says 30% of Sasria claim has been paid

The health and beauty chain Clicks was badly hit by the riots in KwaZulu-Natal and is still trying to make up for its losses.

In a trade update on Tuesday, the company said 52 clicks stores and one deal of The Body Shop were looted and destroyed. The stores affected represented 6% of the group’s store base.

Most have reopened, but eleven stores remain closed. “It is expected that another five will be reopened by the end of the first half of fiscal 2022 and four in the second half,” she added.

The last two damaged stores are slated to reopen in fiscal 2023 only .

The United Pharmaceutical Distributors ( UPD) and Clicks distribution centers in KwaZulu-Natal were looted and damaged. These reopened on July 26 and August 16, respectively.

Additional costs were incurred for private security services to protect the distribution centers and air transport costs for the delivery of medicines from Johannesburg to UPD customers in KwaZulu-Natal, the said Group.

The total claim against the SA Special Risk Insurance Association (Sasria) is R 726 million.

The Group reported its first interim insurance payment of R 217 million. R from Sasria.

“Sales for the last seven weeks of the fiscal year were severely impacted by the unrest in KwaZulu-Natal. In addition to the damage-related shop closings and the temporary shop closings at the height of the violence, trade in the affected areas is well below the level of the previous year and should continue in the short term, ”it said.

“Due to the impact of the unrest … and the fact that only 30% of Sasria’s total insurance claims have been accounted for so far,” said the group, it expects a dilution of total earnings per share [HEPS] for the year ending August 31 is expected to increase by 0% to 3%.

“Without the impact of the civil unrest, the HEPS group would be within the 8% to 13% increase in reach that the shareholders were informed beforehand. ”

Meanwhile, the Covid-19 vaccination program at Clicks continues to gain momentum. It now operates 300 vaccination sites and had 596,180 vaccinations nationwide at the end of last month.

Clicks plans to open another 268 vaccination sites in the coming weeks, with 568 vaccination sites expected to be operational by the end of September. This means that Clicks can perform around 615,000 vaccinations every month.