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Retailer Pick n Pay has announced its strongest six-month trade performance, measured by volume, for more than five years.
The group published its unaudited condensed consolidated interim financial statements for the 26 weeks ended August 26, 2018 on Tuesday morning.
Normalised headline earning per share increased by 17% to 100.18 cents per share, over 2017’s restated 85.62 cents per share.
Turnover for the first six months of the financial year was R41.2bn, compared to R38.8bn over the same time period in 2017. Gross profit increased 6.4% to R7.7bn.
The retailer attributed the positive results, in part, to its focus on lower prices and productivity boosts.
“The group benefitted from the decisive action taken last year to reduce operating costs and increase productivity, creating headroom to invest in lower prices, better promotions and greater value for customers.”
It said it had reduced prices across "2 500 every day grocery lines", which in turn helped boost sales volumes. Its loyalty programme also helped retain customers in tough trading environment, it said.
“Pick n Pay offered its Smart Shoppers R2.4 billion in personalised discounts over the last six months, and saw the number of customer redemptions more than double.”
The group opened 60 new stores over the past six months, and closed 13.
Pick n Pay shares were trading at R68 a share at 09:43 on the JSE, up 4.33% on the day.
In a separate results presentation, the group added it was in the process of removing plastic straws from all its Pick n Pay
and Boxer stores.
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