Edition:
United States

Massmart Posts 42 Pct Drop In H1 Headline Earnings, "Cautiously Optimistic" About FY


Thursday, 23 Aug 2018 01:06am EDT 

Aug 23 (Reuters) - Massmart Holdings Ltd ::TOTAL SALES FOR 26-WEEK PERIOD OF R41.6 BILLION REPRESENTED AN INCREASE OF 1.9%.HY HEADLINE EARNINGS DECREASED BY 42.2% TO R210.9 MILLION.HY COMPARABLE STORE SALES INCREASED BY 0.2%.CURRENT WEAKNESS OF DOMESTIC ECONOMY, UNCERTAIN INTEREST'L GEOPOLITICAL SITUATION WHICH IMPACTS OIL PRICE MAKE NEAR- TERM FORECASTING DIFFICULT.MASSMART IS CAUTIOUSLY OPTIMISTIC ABOUT FULL-YEAR'S EARNINGS.GROSS INTERIM CASH DIVIDEND OF 68.0 CENTS PER SHARE, IN RESPECT OF HY ENDED 1 JULY 2018 HAS BEEN DECLARED.INVENTORY BALANCE INCREASED BY 9.2% TO R11.0 BILLION AT HY-END.WILL OPEN ANOTHER 17 STORES OVER REMAINDER OF 2018.LOOKS TO ADD 49 NEW STORES BETWEEN 2018 AND 2020.HY LIKE-ON-LIKE GROSS MARGIN OF 19.6% IS MARGINALLY LOWER THAN PREVIOUS PERIOD.IS CONSIDERING CONVERSION OF SOME RHINO STORES TO CAMBRIDGE AND EVALUATING POTENTIAL NEW METROPOLITAN SITES FOR MAKRO.REVIEWING COMPOSITION OF GROUP'S CURRENT STORE PORTFOLIO.