Pepkor’s profit flattered by R500m provision in 2018
The retailer took a knock in the previous interim period for exposure to guaranteed loans for an executive share scheme
Africa-based retailer Pepkor, previously Steinhoff Africa Retail, is set to announce an earnings increase of between 34.4% and 54.4% for the six months to end-March. The rate of increase has been flattered by the non-recurrence of the earnings knock caused by the board’s decision to provide R500m in last year’s interims for exposure to guaranteed loans for an executive share scheme. If the effect of that non-recurrent event is stripped out Pepkor’s March 2019 interim earnings will be between 4% lower and 6.7% higher. In a Sens statement released on Friday, Pepkor said earnings for the first half of financial 2019 will be between 48.7c and 55.9c a share. The full earnings will be published at the end of May. In a statement released to shareholders in April, Pepkor indicated the R500m provision had knocked last year’s interim earnings by 7.2c a share to 36.2c. “The non-recurring nature of the one-off costs incurred in [the first half of 2018], in isolation, will positively impact [fir...
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