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Massmart expects better earnings

Jan 31 2012 09:48 I-Net Bridge

Company Data

Massmart Holdings Ltd [JSE : MSM]

Last traded R159.70
Change R-0.49
% Change -0.31%
Cumulative volume 182,966
Market cap R34.51bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - Consumer goods distributor Massmart Holdings [JSE:MSM] advised on Tuesday that headline earnings per share (Heps) would be between 10%-18% higher, or 402.4 cents to 431.6c, for the six months to 25 December 2011. Excluding forex, earnings would be between 5% lower to 3% higher, or in a range of 374.4c to 405.9c per share.

It also advised that headline earnings would be between R865.2m and R924.4m, or between 17 and 25% higher. Excluding forex, earnings would be in a range of R804.7m and R868.4m, or 1-9% higher.

The company said the reason for the lower growth rates for the per share figures was due to the higher number of issued shares following the implementation of the Walmart transaction in June 2011.

The group said its results should be interpreted in the context of the Massmart CEO's statement at the Massmart AGM in November that "we expect the group's sales performance to continue to be strong, supported by our investments in price, growth, capacity and integration. These investments are however, expected to put downward pressure on operating profit, before foreign exchange translation, in the short-term, particularly for the half-year to December 2011."

Massmart's interim results will be released on February 22.


 
 
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