S AFRICA: Pick n Pay sales rise but profits plummet in H1
Pick N pay has seen profits fall in its H1 results
South African retailer Pick n Pay has reported an expected fall in its half-year profits despite a jump in sales.
The company, which last month issued a profit warning for the first half of its financial year, today (19 October) reiterated that the fall in earnings was due to investment into its Smart Shopper loyalty programme and its supply chain.
Headline earnings per share nearly halved to ZAR0.54 from ZAR0.90 last year.
EBITDA decreased 17.8% to ZAR882.4m (US$110m) for the six months ending 31 August.
However, turnover rose to ZAR27.1bn, compared to ZAR25.2bn last year.
Pick n Pay said the turnover growth was "encouraging" and insisted the investment it was making in its business would allow it to become a "world-class retailer".
"These initiatives will enable us to better serve our customers in the future", it said.
The retailer recently sold its Australian wholesale subsidiary Franklins to rival Metcash in an A$215m (US$203.9m) deal.
In July, Pick n Pay announced revealed plans to make more than 3,000 staff redundant.
A potential merger combining Symington's and Premier Foods plc's brands was a hot topic for analyst speculation this week. Elsewhere, Australian wholesaler Metcash CEO Andrew Reitzer remained optimist...
Over 470 jobs are to go at Australian retail distributor Metcash as the company adapts to the "difficult" trading conditions in the country....
The future of Iglo Group, Europe's largest frozen food manufacturer, was a hot topic this week with its private-equity owner preparing to put the business up for sale. Elsewhere, the M&A rumour mill f...
The Food and Drink Expo took place in Birmingham, UK, this week, hosting a raft of manufacturers and grocers from across the UK's food and drinks sector....
- 2017: three major drivers of M&A strategy
- just-food 2017 Survey - your thoughts on growth
- 2017 - what will shape the UK food sector?
- Could BRF's Turkey move pave way for OneFoods IPO?
- Food market in 2017: big foodservice trends
- Ferrero insists Nutella not pulled from shelves
- Premier Foods issues profit warning
- UK's Bakkavor plays down IPO "speculation"
- PepsiCo launches Walkers Mediterranean in UK
- Kellogg names Fareed Khan as incoming CFO