Pick 'n Pay 'very aware' of food price increases

Pick n Pay says its doing everything it can to minimise its impact on customers

Listed food retailer Pick 'n Pay is "very aware" of the increase in food prices, it said today. "We are very aware of the inflationary pressure on basic foods and are doing everything we can to minimise its impact on customers," the company said in its results for the year ended February 29, 2008.

Group turnover at R45.4 billion showed strong growth of 15.4% above last year. Trading profit increased by 16.9% with the trading profit margin increasing from 3.2% last year to 3.3% in the year. Headline earnings per share came in at 198.82 cents - 10.1% above last year, the company said.

"This result must be viewed in the context of the significant investment we are making in the implementation of our strategy," Pick 'n Pay said. The strategy included the Pick 'n Pay brand relaunch, the development of its new convenience food range, the continued implementation of SAP accounting systems and the opening of its new distribution facility at Longmeadow in Gauteng.

These factors had had "a material cost impact on this result," the company said. Looking forward, the retailer said it was "confident that the Group will achieve an acceptable growth in headline earnings for the 2009 financial year, and with the significant investment taking place, strong growth for the years thereafter." - Sapa