SA's struggling economy plus restructuring costs knocked Massmart's profit
The retailer reported a 42 percent drop in profit for the first half of this year.
Massmart Holdings, part of Walmart, this week reported a decrease of 42 percent in half-year profits. The retailer attributed this drop to weak consumer spending as well as costs associated with the restructuring of some components of its wholesale and discount businesses. It says these costs amounted to around R110 million.
Massmart said in a statement that headline earnings per share (Heps) before restructuring costs were 133 cents per share – a 20 percent drop from the same period a year earlier, while sales decreased by 2.2 percent, to R42 billion.