Pick 'n Pay to roll out 59 new stores
June 7, 2006
By Evan Pickworth
Johannesburg - Pick 'n Pay released its annual report on Tuesday, with one of the major highlights the fact that 49 new stores were opened in the year, with 59 confirmed for next year.
Chairman Raymond Ackerman said: "It is important to note that the entire group is very focused on the future. Whether through the continued investment in Franklins, the capital expenditure programme undertaken this year, our capital commitments for new stores across all brands over the next few years, or our investment in a new fresh distribution facility in Gauteng, we are actively focused on building future capacity."
He said one of the primary goals of Pick 'n Pay's investment in Franklins was around the opportunity they saw for franchising in Australia.
"Our first franchise store started operating in April 2006. We are quietly confident that our franchise model will work and look forward to an improved performance at Franklins in the coming year," said Ackerman.
He said the strike at Pick 'n Pay stores mid-year had impacted predominantly on turnover and while the company had mostly recovered their top line sales, some divisions and select regions had fought hard to recover turnover.
Chief executive officer Sean Summers said headline earnings at R705.6 million increased by 15.2 percent for the year and that as a result of the concentration effect of share repurchases mainly towards the end of the prior year, headline earnings per share at 153.02 cents was up 17.1 percent.
He said the increase in trading profit of 16.9 percent for the group was a good performance, with trading margin increasing from 2.8 percent to 3 percent.
Summers said the operating profit increase of 13 percent was below that of trading profit over last year and had been impacted by the lower interest received during the year as a direct result of the significant investments the Group had made in both property and equipment, which reduced average cash balances.
Summers said this was the third year that the company had included a review of sustainable development performance in the annual report.
He said an ongoing focus was work in promoting black economic empowerment (BEE) and that the Group was particularly active in supporting the development of small entrepreneurial BEE suppliers and Family Store Franchisees.
He said that during the next financial year the company would finalise their strategic vision for sustainability and agree priority action areas and timeframes.
"The implementation of this vision will include rolling out our sustainability information management system, undertaking training and awareness initiatives, and implementing specific projects in our stores and offices and through our supply chain. We also aim to identify and implement energy, water and waste minimisation initiatives in our stores and offices," said Summers. - I-Net Bridge
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