By Siyanda Mthethwa
JOHANNESBURG (Reuters) -South African grocery retailer Pick n Pay reported on Monday a smaller loss before tax, saying it reflected success strategic initiatives.
The country’s third biggest grocery-retailer reported a loss before tax and capital items of 317 million rand ($18.31 million) in the 26 weeks to August 31 compared to a loss of 1.1 billion rand last year.
Pick n Pay has been battling to regain some of its market share that it lost to one of its main competitors Shoprite.
The group said its turnover grew by 4.9% to 58.8 billion rand, driven by a 13.9% rise in Boxer’s turnover, its discounter business that it spun out last year, and a 0.1% growth in the Pick n Pay segment.
Group trading profit rose by 273.5% year-on-year to 310 million rand, lifted partly by a 931 million rand Boxer trading profit but softened by 621 million rand trading loss in its Pick n Pay business.
“The multi-year journey of returning Pick n Pay to a profitable and future fit business continues to be tackled in a purposeful and methodical manner,” said the company in a statement.
($1 = 17.3125 rand)
(Reporting by Siyanda Mthethwa; Editing by Sfundo Parakozov and Kim Coghill)
