Johannesburg - Pick n Pay’s shares rose the most in two weeks after the South African supermarket chain said first-half earnings gained as much as 25 percent and that pressures facing consumers in the country may “begin to alleviate” in the coming months.
The stock increased as much as 3.3 percent, the most since September 22, and traded 2.1 percent higher at R69.42 as of 10.41am in Johannesburg. That extended an advance for the year of 6.8 percent, valuing the Cape Town-based company at R34 billion ($2.4 billion).
South African shoppers have been battling a range of challenges to their disposable income, including unemployment of 27 percent, the slowest economic growth since 2009 and rising interest rates.
Inflation, which held steady at 5.7 percent in September, is the most likely factor expected to ease, Pick n Pay said.
Pick n Pay earnings per share excluding one-time items rose 20 percent to 25 percent in the 26 weeks ending August 28 to as much as R8.33, the company said in a statement on Friday.
Sales increased by 7.2 percent. The retailer will release full half-year earnings on October 18.
BLOOMBERG