Pick 'n Pay fills up shareholders' baskets
April 24, 2007
Johannesburg - South African retailer Pick n Pay on Tuesday reported an 11 percent increase in diluted headline earnings per share to 160.79 cents for the year ended February from 144.92 cents a year ago.
Headline earnings per share before the reversal of a deferred tax asset of R46.4 million in relation to previous years' Score operating losses, was up 18 percent at 180.55 cents.
As this charge did not arise from current year activity, the company considered a headline earnings calculation excluding this charge to more fully reflect the group's result for the year, it said.
A final dividend of 107.25 cents per share was declared - up 18.5 percent - and the total dividend declared for the year increased by 18 percent to 134.25 cents.
The group reported a 12.1 percent rise in turnover to R39.3 billion, while its trading profit grew 23.2 percent to R1.29 billion.
Chief executive officer Nick Badminton said the group was pleased with the result, particularly the second half of the financial year, where turnover increased 13.9 percent. Current trading to date was bullish, he said.
Group turnover growth was 12.1 percent, with South African operations achieving growth of 12.6 percent. Internal inflation for the year within the Pick 'n Pay business averaged 5.7 percent, while the group's Boxer and Score chain of stores recorded higher inflation for the 12 months.
In Australia, the group's Franklins business more than halved its trading loss from A$19 million to A$8.8 million.
"The Pick 'n Pay retail division produced a solid performance, showing real growth in both turnover and group profit contribution," Badminton said.
Pick 'n Pay opened ten new corporate supermarkets during the year, while two were converted to the Pick 'n Pay Family franchise format. Seven new stores will be opened in the year ahead, Badminton said.
"The Retail division continues to expand its other store formats increasing the number of stand-alone clothing stores to 24 and liquor stores to 36 during the year. During the next financial year we will open a further five clothing and 20 liquor stores," he added.
Badminton said that a complete strategic review of the whole Pick 'n Pay business had taken place and that many of the initiatives highlighted would be implemented during this financial year.
"With the launch of our 40th Birthday campaign and various other initiatives in place throughout the group, we are confident of being able to achieve good growth in headline earnings per share during the 2008 financial year," Badminton said. - I-Net Bridge
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