Pick ‘n Pay profit up

JOHANNESBURG – South African supermarket group Pick ‘n Pay said its first-half headline earnings rose 17 per cent, but its shares fell due to a weaker than expected performance at its Australian operations.

Headline earnings per share, which exclude non-trading, capital and extraordinary items, climbed to 55,31 South African cents from last year’s 47,41 cents, the retailer said in a statement yesterday. Turnover in the Southern African segment rose 12,4 per cent.Earnings for South African retailers over the last couple of years have been underpinned by buoyant consumer demand, mute inflation, low interest rates and tax cuts.”Our performance and trade from the South African business indicate that that’s going to continue,” Chief Executive Sean Summers told Reuters.Group turnover jumped 11 per cent to 17,4 billion rand, but turnover at its troubled Australian Franklins unit fell 5,1 per cent to 404,8 million Australian dollars, mainly due to stiff competition.The group said the process of switching to its own distribution channels in Australia was more difficult than originally anticipated and resulted in one-off costs during the current six months.But it said it expected reduced losses as a result.Summers said the Australian operations had incurred about A$5-6 million in additional costs.The group said it had lost about 73 million rand in turnover after workers went on strike for close to a week in July over wage disagreements.- Nampa-ReutersTurnover in the Southern African segment rose 12,4 per cent.Earnings for South African retailers over the last couple of years have been underpinned by buoyant consumer demand, mute inflation, low interest rates and tax cuts.”Our performance and trade from the South African business indicate that that’s going to continue,” Chief Executive Sean Summers told Reuters.Group turnover jumped 11 per cent to 17,4 billion rand, but turnover at its troubled Australian Franklins unit fell 5,1 per cent to 404,8 million Australian dollars, mainly due to stiff competition.The group said the process of switching to its own distribution channels in Australia was more difficult than originally anticipated and resulted in one-off costs during the current six months.But it said it expected reduced losses as a result.Summers said the Australian operations had incurred about A$5-6 million in additional costs.The group said it had lost about 73 million rand in turnover after workers went on strike for close to a week in July over wage disagreements.- Nampa-Reuters