South African supermarket chain Pick n Pay posted a 15,2% rise in interim headline earnings per share (EPS) from continuing operations on Tuesday and forecast ”good” full-year growth despite tougher conditions.
The company said headline EPS not including its Score low-cost chain, which is being gradually closed down, rose 15,2% to 90,31 cents in the six months to end August. That was in line with its own forecast for a rise of 10% to 20%.
Turnover rose 16,4% to R23,7-billion, with growth of 15,2% in Southern Africa and 24,9% at its Australian business. Trading profit rose 16,7%.
Diluted headline EPS rose 21,5% to 89,76 cents.
The company said it was concerned by market turmoil and a further tightening of economic conditions but was confident of achieving ”good growth” in headline EPS from continuing operations for the full financial year.
South African retailers have struggled this year as a series of interest-rate hikes forced consumers to tighten their belts after several years of strong growth powered by a fast-growing black-middle class.
National retail sales fell by 5,5% year-on-year in August at constant prices, pointing to slowing consumer spending as higher interest rates strain household budgets.
Headline EPS is the main profit gauge in South Africa and strips out certain one-off, non-trading and financial items.
Pick ‘n Pay is the first South African retailer to report results this quarter. New Clicks reports annual results on Thursday and has forecast a 25% to 30% rise in diluted headline EPS. — Reuters