VENTURES AFRICA – Pick n Pay, a South African food retailing company, has reported a 15% fall in full-year profit.
The company failed to meet expectations as it was hit by costs related to its shopper loyalty programme and investments in its supply chain.
Reports indicates that Pick n Pay diluted headline earnings per share for continuing operations fell 15.3% to 157.67 cents in the year to end-February, below the average estimate of 171.52 cents in a poll of 12 analysts by Thomson Reuters.
Pick n Pay has yet to see the benefits of lower interest rates for consumers in Africa’s biggest economy as spending warms up. It is currently diverting cash to improve its supply chain and protect market share as competition intensifies.
According to the retailer, sales soared to R55.3 billion ($7 billion) indicating a 8.1% increase.
Pick n Pay chairman Gareth Ackerman disclosed plans for expansion into the Democratic Republic of Congo (DRC) and Malawi in the next 12 months as the retailer stretches its presence on the continent.
The company has also declared a 108.35 cents final dividend per share for Pick n Pay Stores and 52.57 cents for Pick n Pay Holdings.