South African (SA) grocery retailer Pick n Pay reported on Monday a smaller loss before tax, saying it reflected the success of strategic initiatives.
The country’s third-largest grocery retailer posted a loss before tax and capital items of R317 million ($18.31 million) in the 26 weeks to August 31, compared to a loss of R1.1 billion ($63.55 million) last year.
Pick n Pay has been battling to regain some of its market share lost to one of its main competitors, Shoprite.
The group said its turnover grew by 4.9% to R58.8 billion ($3.39 billion), driven by a 13.9% rise in Boxer’s turnover, its discounter business spun out last year, and a 0.1% growth in the Pick n Pay segment.
Group trading profit rose by 273.5% year-on-year to R310 million ($17.88 million), lifted partly by a R931 million ($53.72 million) Boxer trading profit but softened by a R621 million ($35.86 million) trading loss in its Pick n Pay business.
“The multi-year journey of returning Pick n Pay to a profitable and future-fit business continues to be tackled in a purposeful and methodical manner,” said the company in a statement.
–Reuters–
