Pick n Pay H1 diluted HEPS down 12.9%

South African food‚ general merchandise and clothing retailer Pick n Pay (PIK) on Wednesday, 24 October, reported a 12.9% drop in diluted headline earnings per share to 35.34 cents for the six months ended August from the 40.59 cents reported in the previous corresponding period last year.

By Roy Downing

24 Oct 2012

The company said in a in a note that the period under review had been challenging.

"We have tried to accomplish too much too quickly‚ and are now addressing the considerable operational challenges that large scale change brings. We have prioritised the major initiatives in our change programme to ensure that the basic principles are completely bedded down‚ and that we have a solid foundation in place from which to trade‚" it said.

Revenue grew to R28.5 billion from the R26.8 billion recorded last year. Over the same period‚ the group's turnover grew by 5.9% to R28.3 billion.

"A number of factors have contributed to the disappointing turnover growth. The uncertain economic climate‚ characterised by escalating food and fuel prices‚ continued high levels of unemployment and household indebtedness‚ has resulted in cautious customer spend. We continue to invest in selling price‚ easing the burden for our customers‚ and entrenching our position as the best value supermarket in SA‚" PnP said.

It declared an interim dividend of 14.75 cents‚ 34.4% lower than the 22.5 cents reported last year.

PnP said the current challenging trading conditions is expected to remain unchanged for the foreseeable future.

"We will no doubt look back at this time as one of the most trying in our Group's history. Despite a challenging 6 months and the disappointing result‚ we have not lost sight of how far we have come in transforming the business‚ and the opportunities in place to improve our performance‚" PnP said.