- Revenue increased by 2.6%
- Trading restrictions affected up to 20% of the Group’s revenue
- Headline earnings per share down 56.3%
Harare-South Africa headquartered retail giant Pick n Pay Stores Limited reported a marginal increase in revenue during the half year ending August 2020 with the retailer flagging the negative impact of the on-going global coronavirus (COVID-19) pandemic on sales and operations.
Revenue for the period increased by 2.6% to R44.2 billion comparable to the R43.1 billion recorded in the same period last year.
Comparable turnover from South African operations increased by 3.4% R42.7 billion from R41.3 billion in the same period last year
Despite the slight revenue increase the Group’s sales and earnings, in the first half of the financial year were negatively impacted by Covid-19 and the measures taken by governments to contain it.
“Trading restrictions affected up to 20% of the Group’s revenue at different stages of the lockdown, and sales were further impacted by reduced trading hours, limits on the number of customers in stores, and temporary store closure” said the Group’s Chief Executive Officer, Richard Brasher.
A National State of Disaster was declared on 15 March 2020 in South Africa, with a nationwide lockdown imposed from 27 March. Similar measures followed across the other southern African countries in which the Group operates.
In the same light the Group’s operations in Zimbabwe, where it owns a 49% shareholding were equally affected by the Covid-19 pandemic as the national lockdown was announced 2 days after South Africa. Besides the backlash from the pandemic, the country continues to grapple with severe currency weakness and illiquidity as well as escalating levels of hyperinflation.
Brasher said comparable headline earnings per share, excluding hyperinflation in Zimbabwe were down 56.3% year-on-year, and down 38.6% excluding the once-off costs of the VSP.
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