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.
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.