By ETimes
| HARARE – South African retail giant Pick n Pay says its share of TM Supermarkets Zimbabwe earnings, before any hyperinflation net monetary adjustments, for the 26 weeks ended 27 August 2023 (H1 FY24). Its Zimbabwean subsidiary was not spared from the exchange rate losses. “The 73 stores of our 49% associate-accounted investment had an extremely challenging period, driven by inflationary expense pressures and a 79% depreciation of the ZWL$ auction rate vs. the Rand, which impacted local currency translation into Rand earnings,” the group said in its latest H1 FY24 report. The group’s portion of TM’s reported earnings dropped to just R1.1 million due to a hyperinflation net monetary loss adjustment of R43 million. “Sharp local currency devaluation during the year meant that hyperinflation and local currency translation into Rands negatively impacted the result.” TM paid a dividend of R6.6 million to the group during the period under review. As of right now, the investment is worth R33.1 million. Rest of Africa, a division of the group, provided R2.7 billion in consolidated segmental sales, increasing 14.4% on an annual basis and 12.2% in constant currency terms. “The Rest of Africa segment delivered pro forma profit before tax (PBT) and capital items of R84.2 million (before the application of hyperinflation accounting) down 36.2% on the R131.9 million achieved in H1 FY23,” read the report. “The underlying Rest of Africa PBT decline was the result of a 55.8% decline in Zimbabwe earnings (excluding net monetary adjustments), combined with a satisfactory PBT increase from consolidated Rest of Africa operations.” The Pick n Pay Stores share price closed at 25.00 ZAR on its last trading day (Thursday, October 19, 2023). |