OCTOBER 18, 2016 – South African retailer Pick n Pay Stores Ltd on Tuesday posted a 23.7 percent rise in half-year profit as it continued to cut costs in a tough trading environment.
Headline earnings per share (HEPS) – increased 23.7 percent to 82.43 cents from 66.62 cents per share for the half-year to end-August.
“The Pick n Pay turnaround plan remains firmly on track. We are improving our shopping trip, introducing more products, becoming ever more efficient, and reducing our costs,” Chief Executive Richard Brasher said in a statement.
In a tough trading environment with sluggish economic growth, depressed consumer confidence and heightened competition, the firm said it improved trading profit margin to 1.5 percent from 1.3 percent of turnover.
Pick n Pay, which also trades in Namibia, Zimbabwe and Zambia, said it is on track with developing its operations in Ghana and Nigeria; with its first Ghana store to open towards the end of 2017 and first Nigeria store in 2018.
Group turnover at 37.4 billion rand, increased 7.2 percent on last year.
Headline EPS is the main profit measure in South Africa and strips out certain one-off items.
Directors have declared an interim gross dividend of 29.90 cents per share out of income reserves. Source text for Eikon: Further company coverage: