Pick n Pay (PIK) profit jumps for period ending ending March 2019
Date: 28 April 2019 Category: Stock Market Share price: R69.00 |
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We take a look at the news reported by Reuters and found on sharenet's site regarding Pick 'n Pay's latest financial results.
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Pick 'n Pay records 18% increase in headline earnings per share
While there are various measures of profit, the main one used in South African financial results is headline earnings per share (this excludes sale of assets and various once off's which are reported under earnings per share and provides investors with the details of the underlying performance of the business. The following article on Sharenet summarizes Pick 'n Pay's results.
Article Starts
JOHANNESBURG (Reuters) - South African retailer Pick n Pay Stores Ltd on Friday reported an 18 percent jump in full-year earnings, as price cuts helped it attract highly cost-conscious shoppers and cope with the difficult trading conditions that have hit other retailers.
The country's second largest grocery store chain, which pitches itself as a more affordable alternative to the likes of Woolworths and Shoprite's Checkers, said headline earnings per share (HEPS) were at 326.71 cents ($0.2274) for the 52 weeks to end-February, compared with 276.98 a year earlier. HEPS is the main profit measure in South Africa that strips out certain one-off items.
In a statement, Pick n Pay CEO Richard Brasher thanked his staff for delivering an "outstanding result in a difficult economy", attributing success to price cuts and efficiency gains. "This result is built on a clear, long-term strategy to create a leaner and more cost-effective business," he said, adding that Pick n Pay will also have good years in 2019 and beyond.
Other retailers have struggled amid a slump in retail sales as South African consumers cut back to cope with high household debts, a tax increase and higher prices on basics like fuel. Currency devaluations and trading conditions in markets elsewhere on the continent also hurt. Pick n Pay said the conditions in countries including Botswana, Zambia and Zimbabwe had been challenging, dragging its earnings from the rest of the continent down 16.2 percent.
However, this was offset at home, where the company said its Pick n Pay and budget Boxer stores saw turnover rise at a "market-leading" rate of 7.1 percent. In 2018, the retailer opened 130 stores and revamped 103. Pick n Pay follows a 52-week retail financial calendar, which requires inclusion of an additional week every six years. Including the earnings for this extra week, HEPS rose by 25.2 percent.
Article ends
Article Starts
JOHANNESBURG (Reuters) - South African retailer Pick n Pay Stores Ltd on Friday reported an 18 percent jump in full-year earnings, as price cuts helped it attract highly cost-conscious shoppers and cope with the difficult trading conditions that have hit other retailers.
The country's second largest grocery store chain, which pitches itself as a more affordable alternative to the likes of Woolworths and Shoprite's Checkers, said headline earnings per share (HEPS) were at 326.71 cents ($0.2274) for the 52 weeks to end-February, compared with 276.98 a year earlier. HEPS is the main profit measure in South Africa that strips out certain one-off items.
In a statement, Pick n Pay CEO Richard Brasher thanked his staff for delivering an "outstanding result in a difficult economy", attributing success to price cuts and efficiency gains. "This result is built on a clear, long-term strategy to create a leaner and more cost-effective business," he said, adding that Pick n Pay will also have good years in 2019 and beyond.
Other retailers have struggled amid a slump in retail sales as South African consumers cut back to cope with high household debts, a tax increase and higher prices on basics like fuel. Currency devaluations and trading conditions in markets elsewhere on the continent also hurt. Pick n Pay said the conditions in countries including Botswana, Zambia and Zimbabwe had been challenging, dragging its earnings from the rest of the continent down 16.2 percent.
However, this was offset at home, where the company said its Pick n Pay and budget Boxer stores saw turnover rise at a "market-leading" rate of 7.1 percent. In 2018, the retailer opened 130 stores and revamped 103. Pick n Pay follows a 52-week retail financial calendar, which requires inclusion of an additional week every six years. Including the earnings for this extra week, HEPS rose by 25.2 percent.
Article ends
Share price performance
The screenshot (taken from Moneyweb) below shows the performance of PIK for the day and over various time periods. And as the numbers show longer term PIK has been offering investors a mixed bag over the years, with the last day showing string results, short to mid term showing negative resuslts and longer term results being positive again.
The summary below shows the share price returns of PIK over various time periods:
- 1 day: -3.78%
- 1 month: 4.12%
- Year to Date (YTD): 1.71%
- 1 Year: -13.35%
- 3 Years: -6.17%
- 5 Years: 16.85%