Pick n Pay overcomes tough trade conditions and refurbishment disruption
Grocery chain Pick n Pay hiked its interim dividend 23.6% to 29.9c in its results for the 26 weeks to August 28 released on Tuesday morning. Interim revenue grew 7.4% to R38.3bn, of which 96% came from its domestic market and only 4% from its rest of Africa division. Slow sales growth was blamed on both a tough trading environment and disruption caused by its store-refurbishment programme. The group refurbished 35 stores in the 26 weeks, including 19 Pick n Pay and Boxer supermarkets and six local stores. "This is almost triple the number of stores refurbished in the prior period. The group completed the refurbishment of its Boksburg Hypermarket during the year, and is encouraged by its subsequent strong turnover growth," said CEO Richard Brasher. After-tax profit growth of 18.4% to R381.8m outpaced revenue growth thanks to "further efficiency gains and cost savings across its procurement and supply chain channel". "Growth in like-for-like trading expenses was restricted to 3.8%, ag...
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