Grocery retailer TM Pick n Pay had a solid performance for the full year to end of February 2021, according to one of its shareholders Pick n Pay South Africa.
Pick n Pay South Africa (Pick n Pay SA) which counts TM Pick n Pay as an associate, said trading and earnings performance for the local unit was solid despite the challenging economic conditions.
Pick n Pay SA’s share of earnings – excluding net monetary adjustments from TM Pick n Pay amounted to R109.2 million (US$7.6 million) from R23.1 million prior year comparative.
The latest results were achieved in a period where the Zimbabwe annual inflation rate at some point reached a peak of 837 percent in July 2020.
The period, especially between March and August 2020, was also characterised by exchange rate volatility and foreign currency shortages.
The exchange rate moved from 25 Zimbabwe dollars to 83 against the US dollar.
In addition, the operating hours were not normal as businesses had to comply with various Covid-19 induced lockdown measures that restricted trading hours.
However, the local chain was able to register “sustained market share growth, anchored by
outstanding customer offer and consistent onshelf availability.”
Three more stores were opened during the period.
Furthermore, the local unit was able to pay its trade debt in full.
The solid performance helped the South African shareholder grow its equity investment in TM Pick n Pay to R69.7 million (US$4.8 million) from R50.4 million prior year comparative.