Massmart H1 dil HEPS 370.3c vs 328.2c

Retailer Massmart reported on Thursday that its diluted headline earnings per share for six months ended December 2007 had increased 12.8% to 370.3c.

The retailer also reported headline earnings before its BEE transaction up 16.8% to 402.1c. An increase of 13.2% in the interim dividend to 223c was declared.

Trading profit was reported up 16% to R1.2bn, with turnover up 11% to R20.1bn. In the previous period comparative sales growth was 9.4%.

The company said as the effect of higher interest rates and the National Credit Act impacted consumer spending patterns, the relative exposures of the different competing retail formats have become more visible.

“In particular, we believe that the NCA has ensured that households have a much clearer view of their consolidated debt levels, in some instances perhaps for the first time, and may be driving those customers towards cash-based spending,” it explained.

“In an environment of declining real retail sales growth, the Massmart portfolio - diversified in its participation in the food, liquor, general merchandise and home improvement categories - continued to be resilient. This was assisted by our balanced exposure to the low, middle and upper income consumers and our sales being predominantly cash (98.8%),” concluded Massmart.

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