Loading...
See More

Massmart sees margin pressure

Nov 21 2012 19:10 Reuters

Company Data

MASSMART HOLDINGS LIMITED [JSE:MSM]

Last traded 148
Change -2
% Change -1
Cumulative volume 48675
Market cap 0

Last Updated: 01-04-2015 at 10:14. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Masstores hit with R7.5m TV licence fine

Massmart welcomes court ruling

Massmart profit misses the mark

Walmart shares drop on Mexico scandal

How Massmart, ABI scored in townships

Walmart is the new gold

 
Johannesburg - Massmart Holdings [JSE:MSM] expects no growth in margins until the end of 2013 as the unit of Wal-Mart Stores forges ahead with an aggressive cut-price strategy to double market share in food sales.

Massmart, 51%-owned by Wal-Mart, said sales increased 16% in the 20 weeks to November 11, helped by new stores that added 3.3% to its trading space. Same store sales were up 7.3% with price increases averaging nearly 4%.

"While the level of sales is pleasing and gross margins remain steady, the group's net margins are unlikely to expand for the six months ending December 2012 or the year to December 2013," Grant Pattison, Massmart's chief executive officer, said.

The company's operating profit margin fell to 3.7% in the year to end-June from 5% a year earlier.

Massmart, whose deal with Wal-Mart was completed last year, is expanding its food retail business, challenging South Africa's dominant grocers such as Shoprite, Pick n Pay and Spar.

The company aims to take its food retail market share in South Africa to as much as 20% over five years from 10% now.

Shares in Massmart rose 0.6% to R178.01, in line with the JSE Top-40 index.
walmart  |  massmart holdings

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

This is the most expensive burger in the world!

You won't believe how much someone was prepared to pay for this burger!

 
 

Luxury living

Exclusive food items that WILL break the bank
Top 10 most expensive homes in the world
You can permanently live on a ship and sail the world!
These are the richest people on the planet!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How will you manage Vodacom’s price hike for contracts?

Previous results · Suggest a vote

Loading...