Listed food retailer Pick ‘n Pay has reported a 16,7% rise in its headline earnings per share for the six months to the end of August 2005 to 55,31 cents from 47,41 cents a year earlier. The company declared an interim dividend up 17,7% to 23,3 cents per share, compared with the 19,8 cents declared at the interim stage in 2005.
The result was slightly below analysts’ consensus expectations for headline earnings per share of 57 cents.
Announcing its interim results on Tuesday, Pick ‘n Pay said that given the significant issues the company had to contend with over the period, it is “pleased” with the results.
For the remainder of the financial year, the group said it has some exciting new store openings in Pick ‘n Pay retail; in Australia it will be launching franchising; and in Score, its lower-income targeted chain, the focus will be on ensuring it stays on course to profitability.
For the six months, turnover rose by 10,7% to R16,9-billion from R15,24-billion a year earlier, while trading profit was up by 12,8% to 337,3 cents, from 334,6 cents previously.
Net profit for the period, at R248,7-million, was up slightly on the R247,3-million recorded in 2004, with the trading profit margin steady at 2,2% and the operating profit margin slightly lower at 2,4% versus 2,5% previously.
Headline earnings rose by 14,4% to R255,5-million from R223,3-million, with the increase in headline earnings per share higher due to the concentration effect of the company’s share buyback programme.
Net asset value per share improved to 197,1 cents from 191,8 cents, and cash and cash equivalents stood at R1,1-billion by the end of August, down from R1,3-billion at March 1. — I-Net Bridge