PELHAMS sales volumes across major product lines declined by 51% from 6 441 to 3 290 for the interim period to September as consumer spending declined due to rising inflation which is eroding the majority of people’s disposable incomes.
align=justify>The industrial retail company’s turnover however increased by 971% to $637,7 million from $59,6 million achieved last year.
The turnover growth was below average inflation for the period of 1 107% but the company said their growth was satisfactory “given the background they were coming from”.
Operating profit rose by 7 823% to $147 million with operating attributable profit growing by 2 826% from a loss of $3,7 million during the same period last year to a profit of $115,8 million.
Basic earnings per share were 12 cents ahead of market forecasts of five cents, an improvement from the loss per share of 84 cents that was reported in the comparative period.
The period under review saw Pelhams writing off $2,2 million as bad debts equivalent to 0,40% of average book.
The company has managed to pay off the entire local debt but still has a foreign debt of R640 000 due to an information system investment. The amount was however fully provided for.
The retail entity however was able to reverse the trend with profits made in the last two months of the period under review managing to offset the losses incurred.
The bulk of the profits therefore came from the portion of the debtors’ book that was bought back. — Staff Writer.