Pick n Pay results on the mend, IAFRICA.COM

Iafrica.com – Business

Pick n Pay today reported a much improved second half in the release of its year-end results to 29 February 2012. Chairman Gareth Ackerman said that the company had seen a marked improvement in the second half on the back of major steps forward in transforming the business and a refocused strategy and implementation plan for the business. “Our improved performance over the last six months gives us considerable confidence in the work that we have done in repositioning the Group for the future,” said Ackerman.

“We have had an eventful year where we have delivered substantively on our plan. These achievements include the sale of our Australian business Franklins for R1.2 billion net of fees, the launch of our Smart Shopper programme which has exceeded all projections, an accelerated store roll out and good progress on several comprehensive corporate change projects within the business.”

Group turnover was up 8.1 percent for the year at R55.3 billion and up 8.7 percent for the second half, with pleasing like-for-like growth, buoyed by Smart Shopper, and a particularly strong performance from the LSM 4-7 segment.

Internal inflation was below CPI, but Ackerman said that consumers were facing inflationary increases across the board which was resulting in cautious spending.