Pick n Pay warns of 50% decline in half-year earnings

Pick n Pay flagged a more than 50% fall in first-half earnings on Tuesday, weighed down by not being able to sell alcohol, tobacco and clothes during the lockdown as well as voluntary severance payments.

Pick n Pay, which also owns discount supermarket brand Boxer, said headline earnings per share (HEPS) for the 26 weeks ended August 30, would be down more than 42.52 cents from 85.03 cents reported in the previous year.

The retailer also blamed Covid-19-related costs for the decline in HEPS, the main profit measure in South Africa that strips out certain items.