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Pick n Pay slump worse than expected

Apr 18 2011 08:50 Reuters

Company Data

Pik N Pay Stores Ltd [JSE : PIK]

Last traded R45.25
Change R0.13
% Change 0.29%
Cumulative volume 776,363
Market cap R21.74bn

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

 

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Johannesburg - South Africa's second-biggest grocery retailer Pick n Pay Stores [JSE:PIK]  posted a 18.4% decline in full-year profit on Monday, missing expectations as results were stung by higher costs and industrial action.

Pick n Pay said diluted headline earnings per share from continuing operations was 186.14c in the year to end-February, well below a median estimate of 211.8c by 12 analysts polled by Reuters.

Headline EPS, the main profit gauge in South Africa, strips out certain one-off items.

The company said headline EPS that excludes stock options or convertible bonds fell 18.3% to 189.35c.

While consumers gradually warm up to spending in Africa's biggest economy thanks to lower interest rates and a fall in food inflation, Pick n Pay has yet to see the benefits as it is spending a chunk of its cash building distribution centres to improve margins.

Pick n Pay said sales rose 5.9% to R51.9bn, affected partly by a labour strike in October last year.

Shares in the company have slumped nearly 9% so far this year, lagging behind its closest rival Shoprite, which is up 0.42% for the period.

 
 
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