Massmart half-year profit down 25%
bdlive.co.za - Aug 29th 2014, 09:52
Retailer Massmart reported a 25.2% fall in half-year profit on Thursday as debt-laden consumers battling rising living costs cut back on spending.
Massmart said diluted headline earnings per share totalled 166.4c in the six months ended June compared with 222.6c a year earlier.
Sales rose 10% to R35.7bn ($3.36bn) for the 26 weeks ended June 29.
With the exception of Game SA, the group achieved most of its objectives. Two divisions — Massbuild and Masscash — grew trading profit ahead of sales, while Makro’s growth in trading profit was slightly below sales growth due to new stores in the year-earlier period.
Massdiscounters was compromised by continued soft sales in Game SA, resulting in significantly lower trading profit compared with the year-earlier period.
Higher net interest paid from funding several property acquisitions and an adverse movement in foreign exchange resulted in headline earnings decreasing by 25.5%, while headline earnings declined by 5.7%, excluding foreign-exchange movements, the group said.
Total operating expenses (excluding foreign-exchange movements) increased by 11.3%, with comparable operating expenses increasing by 7.7%. Employment costs, the group’s largest cost category, increased by 12.9%.
Retailers are among the worst performing stocks in Johannesburg over the past 12 months, reflecting investor fears about the impact of tepid economic growth, rising fuel prices and high household debt on consumer spending.From DFM Publishers (Pty) Ltd
Big Black Friday plans for Dion Wired, Builders and Game in 2019
11/10/2019 - 11:11
Black Friday has grown to be an incredibly important ‘shopping holiday’ for South African retailers with Game and Builders reporting a 24% and 33% sales increase over the period in 2018.
Makro has major plans for Black Friday 2019
09/10/2019 - 09:11
With Black Friday set to fall on 29 November 2019, a number of South Africans have already begun planning their purchases.
Minister lauds Massmart supplier programme
03/10/2019 - 11:28
Economic development minister Ebrahim Patel has applauded retailer Massmart’s programme to procure products from small, local suppliers, which has reached the R1bn mark.
Entries now open for the 2nd Sunday Times Lifestyle Gin Awards, in partnership with Makro
13/09/2019 - 08:39
The Awards celebrate the creators and retailers of locally and internationally crafted gins and variants. As with the inaugural competition in 2018, adjudication will take place across both local and international categories.
Massmart partners with Walmart’s global sourcing team to help local suppliers export to Walmart markets
10/09/2019 - 09:28
Representatives from Walmart’s Global Sourcing team are in Johannesburg to meet with 18 of Massmart’s South African suppliers who are interested in exploring opportunities to export their products to Walmart markets.