Massmart plans to ditch more of its less profitable businesses as it focuses on those that it believes have market-leading positions, including general merchandise, DIY, wholesale food and liquor.
It has now appointed banking group Barclays to sell its interest in Cambridge Food, Rhino and Massfresh. While it maintains there’s nothing wrong with the businesses, it sees them as non-core. It also plans a detailed review of its operations outside the Southern African Development Community — but wants to maintain a presence in Africa outside South Africa.
Although the measures implemented by Slape have started to deliver results, particularly in the second half of 2020, the group has reported a wider full-year loss due to the sales restrictions, as well as impairments and retrenchment costs as it closed the unprofitable stores.
Trading profit increased by 5.5% to R1.17-billion, but its loss for the period widened by more than a third to R1.75-billion after it incurred retrenchment costs of about R132.5-million following the store closures. Added to that, its results were affected by impairment charges and a foreign exchange loss of R381-million. Its headline loss per share narrowed by 19% to R426.8c per share.
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