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South Africa’s second-largest supermarket chain store Pick n Pay has published its interim financial results for the six months to 1 September 2019.
Despite South Africa’s tough business environment, the company posted a 9.5 percent increase in headline profit with its home trading profit up 16.4 percent.
“At the core of our result is a very strong performance from our South Africa division,” group Chief Executive Richard Brasher said.
The retailer published the half-year profits on Tuesday showing that the growth recorded in home market covered up for the challenges in its Zimbabwe and Zambia markets.
“Economic conditions in Zimbabwe have been particularly difficult, with businesses and consumers grappling with political and social instability, high levels of inflation, currency devaluation and shortages of staple goods and services,” Pick n Pay said.
Headline earnings per share grew by 17.5 percent to 91.28 cents, with diluted headline earnings per share up 18.8 percent.
Group trading profits rose by 12.5 percent to ZAR 1.2 Bn while comparable group turnover grew 6 percent. Comparable profit before tax (PBT) was up 9.7 percent and the PBT margin improving by 0.1 percent to 1.3 percent.
The group opened over 60 net new stores, and now has more than 1,800 stores with over 1600 stores in South Africa. In its home market, it delivered comparable sales growth of 6.5 percent.
Pick n Pay’s growth continues to show the success of Pick n Pay’s turnaround plan.
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