South African supermarket chain Pick n Pay on Tuesday reported an "unsatisfactory" 7.1 percent rise in turnover to R59.3 billion for the year ended 3 March 2013.
The grocer, which is trailing behind rivals like Shoprite and Spar, added that its trading margin decreased from 2.3 percent to 1.4 percent, while operating expenses increased by 11.5 percent.
Headline earnings per share (HEPS) from continuing operations decreased by 30.8 percent from 160.78 cents to 111.30 cents.
"Pick n Pay is a great business, but the past few years have been challenging," the company said
"We will add trading space via more than 100 stores and improve our existing stores to ensure an improved customer experience.
"Under the leadership of newly appointed CEO Richard Brasher our immediate priority is improving the shopping trip for our customers.
"We need to deliver on our promises to our customers and have opportunities to improve the range we offer, the quality of our products and the value we give back to our customers through price and promotion," it added.
Pick n Pay, which is implementing a turnaround strategy, appointed Mr Brasher, Tesco's former CE of UK operations, as CEO in February.
Pick n Pay is managed through two divisions, the South Africa Division and the Africa Division. The South Africa Division operates in various formats under the Pick n Pay and Boxer brands. The Africa Division is responsible for the Group's emerging expansion into the rest of Africa and operates in Namibia, Lesotho, Swaziland, Mozambique, Mauritius, Botswana, Zimbabwe and Zambia.
The Group said it has adopted a 52-week financial reporting calendar for all future annual financial periods.
Shares of the company have tumbled over the last 12 months.
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