Game vital to Massmart ’s revival
Appointment of vastly experienced Albert Voogd underscores important swing to food and fresh produce
Massmart could finally be starting to deliver after nearly a decade of less than inspiring results. But the revival of the R91bn annual sales Walmart-controlled retailer’s fortunes is far from being a slam dunk. Massmart certainly pleased the market in its annual results announcement of a 15.8% rise in headline EPS (HEPS). This was greeted by a 16% rise in its share price. Massmart’s pricey 25 p:e indicates that more of the same is expected. A big swing factor will be its ability to continue driving a recovery in its Massdiscounters division, which houses Game, one of the group’s flagship brands. "Game is key to the Massmart investment case," says Warren Jervis, manager of the Old Mutual Small & Mid Cap fund. The signs are positive for the 165-store discount division. It came to the party in 2016, lifting profit before interest and tax (PBIT) by R129m (54.8%) to R364m. It accounted for just under half the group’s total R264m rise in PBIT to R2.61bn. The division’s 5.3% rise in sales...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.