South Africa's Pick n Pay Stores has booked a sharp drop in 2012 profits, despite higher sales in the period.

The company said today (23 April) that profits for 2012 were down as headline EPS slipped to 160.78 cents per share, down from 189.35 in 2012. The group also saw EBITDA slip to ZAR2.07bn (US$224m) in the 52 week period to end of February, down from ZAR2.16bn in the comparable period of last year.

The drop in earnings came in spite of a rise in sales, with revenue up to ZAR55.3bn, from ZAR51.2bn last year. Inflation contributed 5.9% to the group's revenue growth.

"This turnover growth is encouraging in a highly competitive environment and is the result of a number of factors, including the positive effect of our Smartshopper programme," Pick n Pay said.

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