South African (SA) grocer Pick n Pay swung to an annual profit before tax on Monday, on the back of a positive swing in net funding interest and its value chain Boxer’s (BOXJ.J), opens new tab strong performance.
The retailer’s profit before tax and capital items was $22.05 million in the 52 weeks ended March 1 against a loss of $14.5 million in the prior 53-week period.
The firm’s headline loss per share narrowed by 14.6% to 52.58 cents.
The improvement was driven by a $41.4 million positive swing in net funding interest, partially offset by a $4.5 million reduction in consolidated trading profit.
The group, which has been battling to regain some of the market share that it lost to rival Shoprite said its turnover inched up 1% to $7.3 billion, driven mainly by a 9.6% rise in Boxer’s turnover.
While Boxer did the heavy lifting, the core Pick n Pay business remained under pressure.
The segment reported a turnover decline of 3.7%, reflecting store closures and conversions.
–Reuters–
