UPDATE 1-Massmart FY profit slips, sees difficult '09

* Headline EPS down 4.6 pct to 605 cents

* Company sees difficult first half (Adds details)

JOHANNESBURG Aug 27 (Reuters) - South Africa's biggest general retailer Massmart (MSMJ.J) posted a 4.6 percent decline in full-year headline earnings per share hit partly by foreign exchange losses and said it expected a difficult first half.

Massmart, which operates chain stores such as Game and Macro, said on Thursday headline EPS for the 52 weeks to end-June fell to 605 cents from 634.1 cents a year ago, in line with its guidance for a 0 to 8 percent decline.

The company said it had compared headline EPS with the 52 week period in 2008, although its 2008 financial year was a 53 week period.

Headline EPS -- the main profit gauge in South Africa - compared to headline EPS of 663 cents in the 53 week period to end-June 2008, fell 28.9 percent.

Sales for the period for the 52 week period increased 10.7 percent to 43.128 billion rand ($5.48 billion), driven largely by product inflation of around 11.4 percent. Comparable sales growth was 8.2 percent.

Massmart has been hit by an economic slowdown like other retailers, but had been praised for boosting profit amid the downturn by attracting cost-conscious customers. (Reporting by Marius Bosch)