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...

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