Pick 'n Pay Posts 35% Profit Growth
Pick ‘n Pay Posts 35% Profit GrowthJSE-listed grocer, Pick 'n Pay, on Monday said it is set to post an improved financial performance in the first half of the 2015 financial year despite a sluggish South African economy and tough operating conditions.
Pick 'n Pay, which is likely to publish its results early next week, said turnover is expected to grow 6.8 percent during the period under review.
The sluggish growth in turnover during the period reflected an increasing financial burden its South African customers are facing and robust market competitiveness.
"We are pleased however, with the improvement in our like-for-like turnover growth, which has increased to 4 percent, from 2.7 percent for the year ended February 2014. We continue to support our customers both by keeping our price increases below food CPI and by investing to improve the shopping trip," it said on Monday.
"Sustained improvement in financial control and operating efficiencies are driving the profit growth, as Pick n Pay steadily becomes a more effective and productive business," it added.
Pick 'n Pay said headline earnings a share would increase by between 25 and 35 percent while earnings a share would surge by between 30 and 40 percent.
South African companies use earnings a share and headline earnings to measure profitability.
"Good expense control and improving operational efficiency is strengthening the capacity of the business to deliver on its strategic focus, which remains that of customer-driven and sales-led growth," it said.