Pick n Pay’s share of TM Supermarkets earnings grow to R80.2m
HARARE – Pick n Pay says its share of TM Supermaket earnings grew 74.7% on last year to R80.2 million ( (US$6.01 mln). The group’s results for the 52 weeks ended 26 February 2017 show that TM Supermarkets’ reported a strong performance despite a tough macroeconomic environment, characterized by liquidity constraints, rising unemployment and falling consumer confidence.
“The team benefited from increased operational collaboration with Pick n Pay, and strong trade from the rebranded Pick n Pay stores in the region. The growth represents growth in local currency terms of 71.8%.
TM Supermarkets is jointly controlled by Pick n Pay South Africa and Meikles Limited which is domiciled and listed in Zimbabwe. The retail chain has 56 stores in Zimbabwe, 16 of which trade under Pick n Pay.
Pick n Pay says its looking at maintaining progress in Zimbabwe. The group has already said it would expand its footprint in Zimbabwe.
During the year, the group also opened 12 new supermarkets outside South Africa, three in Namibia, six in Zambia, one in Zimbabwe and two in Botswana and it also plans to open its first stores in Ghana and Nigeria over the next two years.
Group turnover increased 7% to R77.5 billion, with like-for-like turnover growth of 3.4%. On a constant currency basis, Group turnover was up 7.1%.
The Group said throughout the year, customers faced growing pressure on their household budgets, resulting from high food inflation, rising utility and transport costs, and stagnating real incomes.
“By buying better and running a more efficient business, the Group was able to provide meaningful support for customers, restricting its selling price inflation to 6.1% for the year, well below published food inflation of 11.0%,” it said.