The group's operating profits and headline earnings have also increased, despite constrained consumer spending.
On Monday 25 November, PEP manager Pepkor announced their “commendable” results for the year ended 30 September 2019 with a 9 percent increase in revenue from continuing operations.
The highlights include:
- Revenue from continuing operations increased by 9 percent to R69.6 billion
- Operating profit from continuing operations and before capital items increased by 15.6 percent to R6.8 billion
- Total headline earnings per share increased by 14.5 percent to 96.8 cents per share
- Total earnings per share decreased by 25 percent to 62.6 cents per share, having been impacted by an impairment charge relating to The Building Company business
- A scrip dividend was declared, with a cash alternative of 20.9 cents per share, consistent with the dividend policy of a dividend being covered three times by earnigns
In a statement, Pepkor said that consumer spending remained constrained in a very difficult retail environment, fuelled by high levels of unemployment and low economic growth.
According to the statement, trading subsequent to year-end remains volatile and management is of the opinion that the difficult trading environment will persist as consumer spending continues to be constrained.