The Royal Bank of Canada (RBC), Canada’s largest bank by market capitalization, has announced the acquisition of a larger share in Clicks Group, a prominent health, beauty, and wellness store run by South African businesswoman Bertina Engelbrecht.
RBC Global Asset Management Inc. has increased its beneficial stake in Clicks to 5.001 percent, indicating its trust in the company’s financial strength and potential for growth.
Clicks, led by CEO and executive director Bertina Engelbrecht, is a healthcare industry leader with 900+ stores and 715 pharmacies, as well as a developing digital footprint.
Under Engelbrecht’s leadership, Clicks increased its gross profit by 10.5% to R9.31 billion ($493.3 million) in 2023, up from R8.43 billion ($446.62 million) in 2022.
The retailer’s total income increased by 7.6 percent to R12.16 billion ($643.93 million) from R11.3 billion ($598.34 million) the year before. Total assets rose by 6.6% to R19.03 billion ($1.01 billion) from R17.86 billion ($945.94 million) in 2022.
Despite RBC’s positive investment, Clicks shares fell 59 basis points during today’s trading session on the Johannesburg Stock Exchange.
The stock opened at R375.35 ($21.24), but fell to R373.15 ($21.12) before midday, underscoring the market’s continued volatility. Clicks’ current market valuation is R88.86 billion ($5.03 billion), with RBC’s holding valued at R4.44 billion ($251.4 million).
JP Morgan Chase & Co., one of the world’s major financial institutions, cut its beneficial stake in Clicks from 10.19 percent to 7.51 percent just before the transaction.
The opposing movements of RBC and JP Morgan show shifting dynamics in the retail sector as investors evaluate their positions in the face of volatile market conditions.
