JSE-listed Massmart – the owner of Game, Makro and Builders Warehouse – revealed in a full-year results statement on Monday that it plans to sell its poor performing and lower profile Cambridge Food, Rhino and Massfresh.
The group which posted a widen net loss of R1.8 billion for its full-year to 27 December 2020 (R1.3 billion in 2019) but managed to reduce its headline loss to R0.9 billion, compared to a headline loss of R1.2 billion in 2019, seems to be updating its turnaround strategy to also include further disposals “non-core” assets.
Massmart’s 2019 annus horribilis
Massmart doesn’t plan to close Game stores or sell Masscash
“We are also now moving beyond our turnaround imperative to align the group portfolio to our strategic objective to prioritise investment in core and high returning trading assets,” the group says in its latest results Sens statement.
“To this end we have appointed Barclays to facilitate the disposal of our Cambridge Food, Rhino and Massfresh [comprising The Fruitspot and a meat processing facility] assets,” it adds.
Massmart did not give more details, saying further update announcements would be made in due course. Its 2020 full-year results presentation to analysts takes place later on Monday.
“In January 2020, we announced a portfolio optimisation initiative as one of six work streams in the group’s Turnaround Plan. To date this has informed the closure of our DionWired stores and the decision to divest a number of underperforming Masscash stores,” it notes in the Sens.
“This portfolio optimisation process continues as an ongoing part of the turnaround of our South African store portfolio and will be extended, during the second quarter of 2021, to include a review of our stores outside SADC [the Southern African Development Community],” Massmart says.
* This is a developing story