Massmart’s sales were up 8.9 per cent to 32.2 billion rand from 29.7 billion rand for the same period in 2012.
Massmart is the second-largest distributor of consumer goods in Africa, with brands that include Dion, Game, Makro, Builder’s Warehouse and Cambridge Food.
The retail brand owner, which released their interim results on Thursday, said that revenue was up to 32.4 billion rand for the 26 weeks ended June 2013, from 29.8 billion rand for the same period in 2012.
“A large positive swing in foreign exchange movements caused headline earnings to increase by 51.9 per cent. Excluding foreign exchange, headline earnings declined by 9.4 per cent,” the results statement said.
Operating profit was up 869.1 million rand for the 26 weeks ended June 2013 compared to last year’s 582.9 million rand.
In spite of poor economic growth in the South African economy so far, Massmart recorded an increase in pre-tax profit of 739.8 million rand from last year’s 515.9 million rand.
An interim dividend of 146 cents was declared.
From the end of January this year, Massmart acquired control of seven Makro stores. The cash paid for the control amounted to 575 million rand.
The Massmart group is present in 12 African countries, comprises of 359 stores through the Group’s four operating divisions Massdiscounters, Masswarehouse, Massbuild and Masscash.
American multinational retail corporation Walmart is Massmart’s holding company.
“We believe that the remainder of the year will continue to see sales under pressure, with the potential upside being the annualising of the slaeeeowdown which started in September 2012,” said Massmart.
“Any improvement in earnings in the short term will be dependent on our ability to reduce costs. Any market share gains will be as a result of superior retail offerings.”