Pepkor, which is 71percent owned by troubled retailer Steinhoff International, said the results came on the back of a struggling economy characterised by pressured consumer spending.
However, the group said its defensive market strategy and affordable prices proved resilient in driving sales growth, protecting margins and delivering respectable growth in earnings.
It said revenue increased 7percent to R35.3billion while operating profit rose 6.9percent on a comparable basis to R3.4bn. Pepkor grew retail store footprint to 5332 stores, including 164 new stores opened during the period.
The group, which owns brands like Pep, Ackermans and Pep Africa, as well as speciality divisions and JD Group, said the challenging conditions within the discount and retail sectors in its home market of South Africa weighed heavily on sales growth.