South African mass market retailer Massmart Holdings reported a 13,1% rise in 26-week headline EPS to 433 cents as its cheap stores lured cost-conscious customers, and said 2009 would be tough.
The profit jump was in line with its own forecast for a 10% to 15% increase.
Massmart said on Thursday sales in the 26 weeks to December 28 rose 13% to R22,76-billion rand, with 34-week sales to February 22 up 12,7%, or 11,3% on a comparable basis.
It said 2009 would be tougher than 2008 for retailers battling a consumer downturn made worse by the financial crisis, despite expected interest-rate cuts. But it expected to see ”some improvement” in the second half of the calendar year.
Massmart has ridden out a consumer downturn in Africa’s biggest economy better than many retailers as its discount stores won market share from more expensive rivals.
However its Massbuild DIY and building stores have struggled amid a housing-market slump and as consumers rein in spending on big-ticket items like renovations. — Reuters