South Africa's Pick n Pay sees jump in HY profits
JOHANNESBURG, Sept 20 (Reuters) - South African retailer
Pick n Pay said on Thursday that it expects its
half-year diluted headline earnings per share to increase by up
to 85 percent largely due to cost savings from staff layoffs
made last year.
The company's shares rose more than 3 percent after it
flagged that its diluted headline earnings per share for the 26
ended August would come in between 95.43 and 100.88 cents per
share, compared with a restated 54.53 cents per share in 2017.
Headline earnings - South Africa's most widely watched
profit gauge - strip out certain one-off items.
Normalised headline earnings per share, which exclude the
earnings impact of 200 million rand ($14 million) spent on
once-off severance payments in the prior period, are seen
increasing rising up to 20 percent to 102.69 cents per share.
The retailer cut approximately 3,500 jobs or 10 percent of
its workforce in July last year in what it said were cost saving
efforts in response to difficult trading conditions.
Pick n Pay flagged turnover growth at 6.4 percent despite
constrained consumer spending.
Its shares traded 2.92 percent higher at 69.05 rand by 1127
The company's half-year results are due on Oct. 16.
($1 = 14.4864 rand)
(Reporting by Patricia Aruo)
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