PICKNPAY: 7,402 +42 (+0.57%)
S.Africa's Pick n Pay H1 profit jumps 19 pct as price cuts lure buyers
(Adds details, CEO comment)
JOHANNESBURG, Oct 16 (Reuters) - South African supermarket
chain Pick n Pay Stores on Tuesday said half-year
profit before tax jumped 19.1 percent as price cuts attracted
more shoppers to its stores.
The country's second-biggest grocery store chain reported
profit before tax of 670.2 million rand ($46.70 million) for the
six months ended August, compared with 562.8 million rand same
period last year on a normalised basis.
South African shoppers are feeling the impact of low growth
in disposable income, little to no job creation and tight credit
To keep attracting struggling consumers, Pick n Pay reduced
prices across 2,500 every day grocery lines.
"We have invested heavily in our customers, just when they
need it most," Chief Executive Richard Brasher said in a
"We've reduced prices of key grocery lines, delivered a more
compelling fresh meat and produce offer, and given our customers
simpler and more personalised promotions."
Like-for-like sales climbed 3.8 percent, more than double
the previous half-year's growth. Total sales rose to 41.2
billion rand, up 6.4 percent.
A voluntary redundancy programme to cut costs and create a
leaner group also helped its performance.
Normalised headline earnings per share climbed 17 percent to
100.18 cents, the retailer said.
It declared an interim dividend of 39.10 cents per share, up
($1 = 14.3500 rand)
(Reporting by Nqobile Dludla, Editing by Sherry Jacob-Phillips
and Louise Heavens)
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