Johannesburg - Pick n Pay Stores’ first-half profit rose 37 percent, beating the growth reported by larger South African grocers such as Shoprite Holdings, as it cut costs and focused on stemming market share losses.
Profit increased to R261.9-million in the six months through August, compared with R191.6-million a year earlier, the Cape Town-based company said on Thursday in a statement.
Earnings per share excluding one-time items gained 32 percent, while sales rose 7.2 percent. The company raised the interim dividend 32 percent to 19.6 cents a share.
“A determined focus on cost control and operating efficiency is strengthening our business and is continuing to drive our profit growth in a challenging trading environment,” Pick n Pay said.
South African retailers have struggled this year as rising inflation and unemployment of more than 25 percent have constrained spending.
Shoprite, South Africa’s biggest food retailer, posted slowing full-year profit sales growth in August.
Pick n Pay last year hired Chief Executive Officer Richard Brasher, a former director at Tesco, to lead a turnaround of the company after costs spiralled and market share fell.
The stock has risen 1.9 percent this year, while Shoprite has dropped 19 percent and Woolworths Holdings has declined 4.7 percent.
Bloomberg