Share

Massmart records sales jump

Johannesburg - Massmart's total sales increased by 9.8% and comparable sales grew by 3.8%, the group said on Thursday.

There was an increase in headline earnings of 29.9%, while operating profit went up by 26 percent. This was boosted by the additional week's sales and foreign exchange translation profit, it said in a statement.

Massmart was announcing its full-year results for the 53 weeks ended December 29 2013.

The group said it was encouraged by sales in the first eight weeks this year ended February 23, which grew by 9.5% and comparable sales by 7.7%.

"The strong start suggests better prospects for 2014 compared to 2013," chief executive officer Grant Pattison said.

"While we remain cautious about the state of the consumer, we are more positive about the business as we reap the rewards from the operational focus of last year."

The group said it would expand its shop footprint across sub-Saharan Africa.

This would include opening a pilot soft discount supermarket in Nigeria, launching George baby wear in 40 Game shops, and a George Essentials range in 11 Game shops. Last year the group launched two Builders Superstores and three shops were planned for this year in Tembisa, Vosloorus, and Protea Glen.

Massmart's African operations sales increased by 16.6%.

At Massdiscounters, which included Game and DionWired, total sales for the 53-week period increased by 8.6%.

Game Africa's total rand sales and sales in local currencies increased by 22% and by 14.7% respectively.

"The roll-out of dry groceries and fresh [produce] continues with 48 Game stores now offering both these categories," Massmart said.

"Food sales growth in these comparable stores is exceptionally strong."

DionWired's total sales growth was 19.5%.

Masswarehouse, which included Makro, saw total sales increase by 14.4%.

Comparable sales increased by four percent.

"The new Alberton, Johannesburg store and the relocated Amanzimtoti, Durban store are trading well," the group said.

At Massbuild, which included Builders Warehouse, Builders Express, Builders Trade Depot, and Builders Superstore, total sales rose 11.9% and comparable sales 8.2%.

The group said Massbuild made significant investments in its operating capacity.

Total sales in Masscash, which included Jumbo Cash & Carry, Rhino Cash & Carry, Shield (buying group) and Cambridge Food, increased by 6.5%.

Comparable sales increased by 3.8% with product inflation of 4.2%.

Massmart said trading in the wholesale environment was difficult given the pressure on lower-income consumers, low product inflation, and a very competitive market.

Pattison said 2014 would offer more clothing, food retail, low-income home improvement stores, more new e-commerce offerings, some store rationalisation in over-traded markets, and continued investment in quality and safety.

A cash dividend of 275 cents per share had been declared.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.10
+0.1%
Rand - Pound
23.77
+0.1%
Rand - Euro
20.43
+0.1%
Rand - Aus dollar
12.44
-0.3%
Rand - Yen
0.12
+0.1%
Platinum
920.40
+0.0%
Palladium
1,032.00
+0.6%
Gold
2,328.52
+0.3%
Silver
27.38
+0.3%
Brent-ruolie
88.42
+1.6%
Top 40
68,051
0.0%
All Share
74,011
0.0%
Resource 10
59,613
0.0%
Industrial 25
102,806
0.0%
Financial 15
15,897
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders