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Johannesburg - Food retailer Pick n Pay Stores says that despite the challenge of tightening economic conditions, it remains well positioned for the future owing to its strategic investments.
On Tuesday morning, the company reported a 15.2% increase in headline earnings per share to 90.3c for the six months to end-August 2008. Turnover across the group's stores, including the Franklins chain in Australia, rose 16.4% to R23.7bn, with a 15.2% increase in the southern African business and a 24.9% increase in Australia.
Pick n Pay's trading profit margin stayed steady at 2.9%, compared with the full-year margin of 3.6%.
The company's interim dividend payment rose 15% to 35.7c a share.
Cash generated by trading activities for the six-month period almost doubled to R1.6bn from R979bn for the same period in 2007.
"We are pleased with this result considering the current economic climate and the tightening of consumer spending as a result of higher food and fuel inflation and high interest rates.
In line with the relaunch of its brand in November 2007, Pick n Pay has converted its Score Supermarkets into Pick n Pay Family franchises over 2008, with the brand now discontinued. Most of these stores are new franchises owned by black entrepreneurs.
The group is exploring smaller-format stores, and on Monday announced the trial of two Pick n Pay Express stores in garage forecourts together with BP, which will be opened at by the end of the year.
Pick n Pay shares closed at 2 870c on Monday.
- Fin24.com