Daily Maverick

Pick n Pay plans to enter Nigeria as profits rise

Johannesburg - Pick n Pay Stores announced plans to enter Nigeria as it posted a 26% increase in full-year profit after opening 175 new stores.

The company, based in Cape Town, said it agreed to partner with Lagos-based AG Leventis to enter Africa’s largest economy.

“A key part of the group’s strategy is to establish a second engine of growth in markets in the rest of Africa,” the company said in a statement on Tuesday.

Pick n Pay will hold 51% of the operation in Nigeria, “which will roll out a combination of large and smaller formats to meet consumer needs”.

South African retailers are facing headwinds including weak domestic consumer confidence, rising interest rates and a weak rand, which has declined 16% against the dollar over the past 12 months.

The central bank forecasts economic growth for South Africa this year of 0.8%, which would be the slowest pace since a 2009 recession.

Earnings per share excluding one-time items rose to R2.24 in the year through February, Pick n Pay said. The median estimate of seven analyst estimates compiled by Bloomberg was for adjusted earnings per share of R2.18.

The company restricted selling-price inflation to 3.1% over the year amid “an increasingly challenging economic environment” facing South African consumers, it said.

Sales advanced 8.2% to R72.4bn and the trading-profit margin improved to 2.1%, from 1.9% in 2015.

Project David Mabuza’s Long Walk to Rehabilitation
By Stephen Grootes
For the poor, the UN is ‘a beacon of promise in a landscape of doubt’, Ramaphosa tells the UN in a nod to Mandela’s legacy
By Peter Fabricius
US president’s vow to drop countries that are ‘not our friends’ threatens US aid to SA
By Peter Fabricius
SABC’s rescue plan: A lithe and lean, revenue generating people’s machine
By Marianne Thamm
DA Guns for Gauteng, Part 2: Living in a DA ward, where promise outweighs delivery
By Ferial Haffajee
DA Guns for Gauteng, Part 1: Msimanga readies for the fight at the hustings
By Ferial Haffajee
Is the ANC getting the land question wrong?
By Oscar Van Heerden
The many versions of one violent death in Manenberg
By Heidi Swart
The Taal Monument can be a symbol of hope, nation building and social cohesion
By Michael Jonas
Getting real about decolonisation
By Sameer Dossani