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Retailer Pick n Pay dominated the news on Wednesday, slumping after reporting its first-ever interim loss. Vodacom, meanwhile, was hit with a R1 million fine for its arduous cancellation process by the consumer protection watchdog, while EOH CEO Stephen van Coller looks set to depart in 2024 after more than five years righting the ship.
Pick n Pay slumped after informing shareholders they won't be getting an interim dividend and may not be getting a final one in 2024 either. The retailer reported an interim after-tax loss of just over R570 million, hit by load shedding, promotional activity by competitors, as well as hyperinflation in Zimbabwe. Trading profit cratered more than 97% to about a R32 million. Newly appointed CEO Sean Summers warned shareholders to expect a tough period ahead, but said the retail group will be "getting back to basics" in terms of fixing its relationships with suppliers, staff and customers. The group's discount Boxer brand as well as its standalone clothing stores were bright spots for the group, both booking double-digit sale increases, but this didn't stop its shares falling by almost 13% in late afternoon trade on Wednesday.
ICT firm EOH reported it grew its operating profit for continuing operations by over a third to R135 million in its year to end-July, while it halved its net loss to just over R80 million. Despite weak economic conditions in SA, the group, whose services include automation, security or data analytics, said it was boosted by its international business, notably seeing demand in the Middle East. Valued at about R900 million on the JSE, EOH has been battling with its debt pile over the past few years, but successfully concluded a R500 million rights issue in February, and has inked refinancing agreements with lenders. It has also been trying to put some of its improper past dealings with the state behind it and earned some praise by the Zondo Commission of Inquiry into State Capture for its testimony. CEO Stephen van Coller, meanwhile, has agreed to extend his initial five-year contract for another six months, but has asked the board not to consider an extension beyond the end of March 2024. Shares were down almost 3% in late afternoon trade and have just over halved in the past one year.
