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Massmart Holdings expected to lift annual profit by up to 29 percent amid a consumer spending boom that has fuelled economic growth, the leading consumer goods wholesaler said yesterday.

August 16, 2007

Massmart Holdings expected to lift annual profit by up to 29 percent amid a consumer spending boom that has fuelled economic growth, the leading consumer goods wholesaler said yesterday.

Earnings a share gained at least 25 percent in the 12 months to June, Massmart told the JSE. Excluding the cost of a black empowerment deal, headline earnings a share probably increased by between 34 percent and 38 percent, the company said.

Massmart, which owns the Makro, Game and Dion store chains, said last month that same store sales advanced 16 percent to R34.7 billion during the fiscal year.The Massdiscounters unit lifted sales by 16 percent, sales at Makro grew 14 percent and the Massbuild chain delivered a 27 percent jump in revenue.

Massmart’s stock dropped 30c to close at R81.70 on the JSE yesterday, beating a 1.89 percent fall in the general retailers sector. The shares have risen 16 percent this year.

Annual results are due to be posted next Thursday. – Bloomberg, Johannesburg