Pick n Pay’s Zim partner shows strong earnings growth

(iStock)
(iStock)

Harare - TM Supermarkets, the Zimbabwe-based associate of Pick n Pay [JSE: PIK], recorded strong performance for the 52 weeks ended February 26 2017.

According to an earnings report released on Wednesday, Pick n Pay said its share from the associate’s profits were up 74.7% driven by successful collaboration between TM and Pick n Pay, and strong trade from rebranded Pick n Pay stores. 

“The group's share of TM's earnings grew 74.7% on last year to R80.2m, representing growth in local currency terms of 71.8%,” said Pick n Pay in the statement.

Pick n Pay said the results were achieved in a tough macroeconomic environment characterised by liquidity constraints, rising unemployment and falling consumer confidence.

TM Supermarkets has 56 stores in Zimbabwe, 16 of which trade under the Pick n Pay banner.

Going forward, Pick n Pay says it looks to maintain progress in Zimbabwe. 

Pick n Pay’s partner in the associate, Meikles Limited, recently received an acquisition bid from a Dubai-based entity, Albwardy Investment, which has business interests in hospitality, retail and agriculture. 

Meikles, which listed on the Zimbabwe Stock Exchange on April 7, published a cautionary statement saying discussions relating to a possible offer to its shareholders and the subsequent delisting from the ZSE remain ongoing.

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