S. AFRICA: Massmart Reports Solid FY Growth

Massmart, the Walmart-owned group, has reported a solid set of growth figures for its last fiscal year, despite what it termed tough market conditions in the various countries where it operates.

For the year ending 25 December 2016, group sales were up 7.7% to 91.3bn rand, with like-for-like sales growing by 5.4%, even as trading profit was up 11.9% to 2.6bn on a constant-currency basis. The growth was helped by the addition of 9 net new stores, as well as cost controls and price inflation.

The Masswarehouse division saw sales grow by 11% (+7.6% LFL), while Masscash division recorded a 7.5% increase (+7.9% LFL), even as Massbuild saw sales grow by 5.6% (+1.7% LFL) and Massdiscounters generated a 5.3% rise (+1.5% LFL).

Massmart also reported sales for the eight weeks to 19 February 2017 – overall sales edged up 0.6%, but like-for-like sales were down 1.5%, as growth in its home market offset international weakness.

The group said it plans to open 11 new stores over the next two years outside of South Africa, although it has no plans to enter any new markets

At the end of the year, Massmart operated 412 outlets across its various banners, including 39 outside of South Africa.