[TOP STORY] Pepkor interims reflect an increasingly exciting business

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[LISTEN] We can even do better if we get our stockholding right, there’s much more opportunity in the home business than we are utilising at the moment: Pepkor CEO LeonLourens on MoneywebNow Download the podcast

SIMON BROWN: I’m chatting with Pepkor CEO, Leon Lourens, on the results for the six months ending March. Revenue up 3.3% normalised headline earnings up 12.1%; 144 new stores. Leon, I appreciate the time today. I want to come to those new stores, but first the KZN floods, which fall outside of the reporting period. I imagine there must have been some impact for Pepkor.

SIMON BROWN: I’ll take your point on that. I want to touch on inflation and input costs. All the CEOs I chat to are struggling to varying degrees. How much are you able – perhaps because of the slightly different industry you are in – to manage the inflationary pressures that we’re seeing globally?For the past two to four seasons our product inflation has always hovered around 4% to 5%.

I think we can even do better if we get our stockholding right, because we’ve actually been selling too fast; there’s much more opportunity in the home business than we are utilising at the moment. LEON LOURENS: Yes, we are very confident of that. We work on an average of about 300 stores per year. This year will be 350 stores in actual; that’ve already been sort of signed up and that’s going to happen.

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