Energy cuts hit South Africa’s Mr Value half-year revenue

JOHANNESBURG, Nov 23 (Reuters) – South African price range vogue retailer Mr Value (MRPJ.J) reported on Thursday a 9.3% decline in half-year revenue, hit by elevated ranges of energy cuts and as double-digit inflation in meals and transport impacted its worth prospects extra severely.

It reported headline earnings per share, a revenue measure, of 449.9 cents for the 26 weeks ended Sept. 30, down from 496 cents a 12 months earlier.

Retailers in South Africa have been impacted by rolling energy blackouts, typically lasting as much as 10 hours a day, which have decreased buying and selling hours and added the price of operating diesel mills.

Mr Value, which additionally sells homewares, stated blackouts had been 4 instances greater within the first quarter than the identical interval within the prior 12 months.

It spent 140 million rand ($7.62 million) to speed up its back-up energy options, which by the tip of the primary quarter had utterly coated its core enterprise in contrast with solely 60% of its retailer base in the beginning of the quarter.

The group estimates a lack of 60,000 buying and selling hours from energy cuts, equal to about 190 million rand in income within the half 12 months.

Group income grew 26.4% to 16.8 billion rand, with retail gross sales progress of 27.8%, helped by the acquisition of branded footwear and clothes firm Studio 88.

Excluding Studio 88, retail gross sales grew 3.8% and comparable retailer gross sales fell 0.8% within the half 12 months.

($1 = 18.3689 rand)

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