Harare – TM Pick n Pay delivered turnover growth of 30.4 percent in local currency terms, for the 26 weeks ended August 26, 2018 anchored by improved stock availability and an effective promotional calendar.

The Group’s share of TM’s after-tax earnings grew 94.5 percent year-on-year.

In the period under review, profit before tax and before capital items was up 14.6 percent on last year, with an underlying margin improvement from 1.5 percent to 1.6 percent of turnover.

It said profit before tax was up 7.3 percent to R136.1 million for the rest of Africa driven by an outstanding performance from the Group’s associate in Zimbabwe, TM Supermarkets (TM).

The rest of Africa operations contributed R2.3 billion of segmental revenue for the 26 weeks ended August 26, 2018 up 0.4 percent on last year, with negative like-for-like growth of 2.9 percent.

The group said removing the impact of currency weakness, segmental revenue is up 3.9 percent in constant currency terms, with like-for-like growth of 0.6 percent.

“This performance reflects the pressure of a tough trading environment in Zambia, characterised by a constrained consumer, intense retail competition, import restrictions, and selling price deflation across broad product categories.

“The team in Zambia mitigated the impact of the difficult trading conditions through determined cost control and tight working capital management.”

Pick n Pay said profit before tax and before capital items in the core South Africa division was up 16.7 percent on last year, a resilient performance in a trying economic environment.

Including the positive impact of capital profits, Group profit before tax was up 19.1 percent on last year.

The Group said the effective tax rate of 27.0 percent is in line with the 2018 financial year and it reflects the contribution of the Group’s share of its associate’s after tax profits to profit before tax.

Normalised basic earnings per share (EPS) – increased 21.5 percent from 84.77 to 102.98 cents per share.

Normalised headline earnings per share (HEPS) – increased 17 percent from 85.62 to 100.18 cents per share.

“The difference between the growth in normalised headline earnings of 16.1 percent and normalised headline earnings per share of 17 percent is due to the increase in the weighted average number of treasury shares held by the Group under its employee share incentive schemes.”

Pick n Pay added that normalised diluted headline earnings per share (DHEPS) – increased 17 percent from 84.11 to 98.38 cents per share.

Normalised DHEPS reflects the dilution effect of share options held by participants in the Group’s employee share incentive schemes.

The Group has a 49 percent investment in its associate TM Supermarkets in Zimbabwe.

With its pay off line “Real Value Always”, customers are offered a wide range of groceries and perishables, with a limited range of general merchandise and a fresh offering which caters specifically for the communities they serve at competitive prices.

TM Supermarkets draws its customers from all communities and income groups across Zimbabwe, while store formats range from convenient small supermarkets to larger supermarkets.

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