adminJohannesburg. – Pick n Pay Stores Ltd. said first-half profit climbed 6,2 percent as South Africa’s second-biggest grocer cut costs, added new stores and stemmed market share losses. The shares gained the most in more than a month. Net income increased to R192 million in the six months through August, compared with R180,4 million a year earlier, the Cape Town-based company said yesterday. Earnings per share excluding one-time items gained 14 percent to US40,81c, while sales rose 6,2 percent to R30,1 billion.
“I’m encouraged, but far from satisfied – we can do better. We are determined to control our costs and invest in growth,” chief executive officer Richard Brasher said in a presentation in Cape Town.
The retailer is working to regain market share from competitors such as Shoprite Holdings Ltd, Africa’s largest grocer, and has been trying to reduce costs and improve its supply chain amid a downturn in consumer confidence. The outlook for South African household spending remains uncertain as high wage settlements are counter-balanced by low employment, high debt levels and rising prices, Reserve Bank Deputy Governor Francois Groepe said on October 11.
Pick n Pay will open 64 new stores in the second half, Brasher said. That compares with 44 new outlets opened across all formats during the first six months of the year, alongside nine closures. – Bloomberg.
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