South African supermarket chain Pick n Pay reported almost no growth in full-year earnings on Wednesday, and said it expected tough conditions to continue, underscoring the grim outlook for consumer demand in Africa’s biggest economy.
South Africa last year exited its first recession in nearly two decades, but household finances remain under pressure, squeezed by high debt and unemployment.
The company said in a statement that business had been “exceptionally tough” during the financial year, adding it expected conditions to remain difficult for the March to August period.
Pick n Pay, the country’s second-largest supermarket company, said headline earnings per share rose just 1% in the year to end-February, totalling 236,33 cents.
Headline EPS, which strip out some one-off and non-trading items, are the main profit gauge in South Africa.
Revenue totalled R55-billion for the year, an increase of just less than% 8from the previous year.
Shares of the company are up about 7% so far this year, outperforming a 4% rise in Johannesburg’s Top-40 index. — Reuters