Johannesburg – Retailer Pick n Pay Stores said on Monday that it expected full-year profit to increase between 15 percent to 20 percent, buoyed by disciplined cost measures and higher productivity in stores.
The company said headline earnings per share for the year to February would be between 257.65 cents and 268.85c a share compared with 224.04c a share last year.
“Greater operating efficiency is evident in the strong discipline on cost, more centralised supply chain and higher productivity in stores,” the company said.
Pick n Pay, which also trades in Namibia, Zimbabwe and Zambia, said turnover growth of 7 percent reflected a difficult trading environment, alongside some internal disruption from refurbishments and store closures.
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Sluggish economic growth, depressed consumer confidence and heightened competition was weighing on retailers in South Africa.
Pick n Pay has lost ground in South Africa to rivals such as market leader Shoprite.