Pick n Pay says profits rose 20% thanks to SA business and better prices
The group says the performance of the SA business ‘mitigated some operating challenges experienced outside its borders’
Pick n Pay Stores says net profit rose by about a fifth in the financial year to March 3, even as its operations outside SA stumbled. The group said its stores targeting SA’s lower-to-middle-income consumers performed well, while sales were also boosted by “a more competitive price position” and a better fresh-produce offering. Thanks in part to promotions, Pick n Pay said selling prices were cut 0.3% in the year, while volume growth of 5.1% “represented its strongest underlying trading performance for many years”. “Market-leading turnover growth was achieved without sacrificing earnings growth,” it said. Profit after tax was R1.65bn in the 53-week period, versus R1.3bn in the prior 52-weeks. On a pro-forma basis, net profit was up 19.9% as turnover grew 7.1% and margins improved. In SA, turnover grew 7.4% and profit before tax was up 23.8%. Bjorn Samuels, equity analyst at Argon Asset Management, said Pick n Pay posted “a good set of results”. “Both total and like-for-like sales o...
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