Pick n Pay reports profit decline in sub-Saharan markets

Pick n Pay’s annual report for the 12 months to March 2019 shows that the margins of its stores in sub-Saharan Africa have narrowed. The South African grocery retailer has outlets in six southern African countries: Botswana, Lesotho, Namibia, Swaziland, Zambia, and Zimbabwe.

In spite of what it described as “economic challenges” (particularly in Zambia and Zimbabwe), the sales of its “Rest of Africa” division rose at an annual rate of 2.2% (5.3% in constant currency terms, or 1.5% on a like-for-like basis), to ZAR4.7 billion (USD327 million). However, net earnings declined by 16.2%, to ZAR241 million (USD16.8 million).

The chain opened a net four new stores in international markets during the year – opening three outlets in both Swaziland and Zambia and closing two in Namibia. This brought its total number of international stores to 148. Pick n Pay also revealed that it had “commenced development” of its first store in Nigeria and that it would open next year, with two more planned.

If you want to read more, click here