Pepkor says market-share gains boosted half-year earnings
Pepkor, which owns the Pep and Ackermans brands, says sales and earnings rose in the six months to end-March thanks partly to market-share gains in clothing and merchandise. “The Pepkor group reported satisfactory results in a challenging retail market,” it said. “Respectable earnings growth on a comparable basis was achieved, notwithstanding lower than expected sales growth.” The retailer, previously known as Steinhoff Africa Retail, said its “defensive market positioning”, partly hinged on competitive prices, boosted growth. Group revenue rose 7% to R35.3bn. Excluding once-off items, operating profit increased by 6.9% to R3.4bn and headline earnings per share grew 3.4% to 52.4c. The company did not declare a dividend. Pepkor said it grew its market share as it expanded its footprint to 5,332 stores, including 164 new store openings in the period. The clothing and general merchandise segment, the group’s largest, contributed revenue growth of 5.2% to R23.1bn and a 6.6% rise in oper...
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