Pick n Pay expects improved performance

Cape Town - Pick n Pay [JSE:PIK] advised that Pick n Pay Stores is in the process of finalising its 2017 financial results for the 52 weeks ended 26 February 2017, which are expected to be published on 19 April 2017.

The group will deliver an improved financial performance for the 2017 financial year.

Headline earnings per share (heps) will increase between 15% and 20% on the prior year, continuing the forward momentum achieved by the group over each of the last four years.

The group said the result will demonstrate its progress in delivering a balanced and sustainable recovery.

"Greater operating efficiency is evident in the strong discipline on cost, more centralised supply chain and higher productivity in stores. Turnover growth of 7.0% reflects a difficult trading environment, alongside some internal disruption from refurbishments and store closures which are improving the quality of the estate," it said in a statement.

The group is developing strong pillars for future growth by improving its customer offer across its Pick n Pay and Boxer formats, opening more Next Generation stores, accelerating product innovation through private label and enhancing its clothing, online and services offer.

"The group is now well advanced on its journey to restore the business to a sustainable profit margin, with a cost-effective and efficient engine and effective platforms for long-term growth," it said.

This trading statement has not been reviewed by or reported on by the group's auditors, it added.

By end of trade on Monday the share price was down 2.61% at R63.10.