South Africa's Pick n Pay flags up to 20 pct rise in FY profit

Published 2017/04/10, 14:59
Updated 2017/04/10, 15:00
© Reuters.  South Africa's Pick n Pay flags up to 20 pct rise in FY profit
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JOHANNESBURG, April 10 (Reuters) - South African retailer Pick n Pay Stores Ltd PIKJ.J said on Monday it expects full-year profit to increase between 15 to 20 percent, buoyed by disciplined cost measures and higher productivity in stores.

* Headline earnings per share (HEPS) for the 52 weeks ended February 2017 will be between 257.65 and 268.85 cents per share compared to 224.04 cents per share in 2016.

* "Greater operating efficiency is evident in the strong discipline on cost, more centralised supply chain and higher productivity in stores," the company said in a statement.

* Pick n Pay, which also trades in Namibia, Zimbabwe and Zambia, said turnover growth of 7 percent reflects a difficult trading environment, alongside some internal disruption from refurbishments and store closures.

* Sluggish economic growth, depressed consumer confidence and heightened competition is weighing on retailers in South Africa.

* Pick n Pay has lost ground in South Africa to rivals such as market leader Shoprite SHPJ.J , after failing to invest in new stores. But Richard Brasher, a former UK head of Tesco TSCO.L who took over as Pick n Pay CEO in 2013, is implementing a plan to win back market share.

* The firm is expected to release its full-year results on April 19.

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