Pick n Pay Stores Ltd. missed dividend estimates as South Africa’s third-largest grocer incurred extra costs to keep the lights on at its stores amid nationwide power outages.
(Bloomberg) — Pick n Pay Stores Ltd. missed dividend estimates as South Africa’s third-largest grocer incurred extra costs to keep the lights on at its stores amid nationwide power outages.
A dividend of 1.85 rand a share was declared for the 12 months ended Feb. 26, the Cape Town-based company said in a statement on Thursday. That compared with a 1.92-rand median estimate of eight analysts surveyed by Bloomberg. Sales rose 8.9% to 106.6 billion rand ($5.9 billion).
Last year, the grocer announced a three-year target of 3 billion rand of savings, even as it faces inflationary pressures and the increased cost of adding standby generators, rooftop solar panels and refrigerated trailer trucks. South African companies ranging from miners to food producers are grappling with the worst nationwide power cuts on record.
Pick n Pay’s stock has dropped 28% this year, while the benchmark index has climbed. Shoprite Holdings Ltd., the country’s largest grocer, has declined 3.7%.
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