South African retail group Massmart said on Thursday its headline earnings fell 31.7% to R901.2 million in the 52 weeks to December 30.
Massmart; which owns local brands such as Game, Makro, Builder’s Warehouse, and CBW; said the combination of low sales growth and higher expense growth caused group trading profit excluding foreign exchange movements, interest and restructuring costs to decline by 16.8% to R2.1 billion.
It said this was against the backdrop of a difficult economic environment, characterised by low economic and wage growth as well as constrained consumer confidence.
“Notwithstanding the difficult environment, Massmart maintained strong market share across durable goods categories including; small and large domestic appliances, hi-tech, and most DIY (do it yourself) and hardware categories,” it said.
Total sales from the group’s South African stores – which generate 91.3% of sales – grew by 2.9% compared with 1.5% for comparable store sales. Total sales from stores outside South Africa grew by 3.9% in constant currencies.
The company was focused on those factors within its control, given a challenging operating environment.
– African News Agency