Company news in brief
Healthy sales growth for Mr PriceValue fashion retailer Mr Price reported an almost 10% growth in sales in its third quarter to 30 December while it continued to carve out market share.
Retail sales rose 9.9% to R13.2 billion, with comparable store sales up 4.1%, which was itself better than the market's 3.4% growth, according to industry data.
"We anticipated a shift in momentum once we had successfully navigated the disruption of our [enterprise resource planning system] change and the installation of load shedding backup power facilities in all our stores," CEO Mark Blair said. – Fin24
PPC completes sale
South Africa's biggest cement maker PPC announced that it had completed the US$42.5 million (about R780 million) sale of its Rwandan business unit, Cimerwa, and is now in a net cash-positive position.
"Cimerwa is now part of a regional group that is better placed to support its growth," said CEO Matias Cardarelli, adding the disposal will allow the group to focus on its core Southern African markets, where it sees opportunities to drive improved profitability and secure a more sustainable return on capital. – Fin24
Harmony produces more gold
South Africa's largest gold producer Harmony said total gold production for the six months ended December was between 820 000 and 835 000 ounces, an increase of between 12% and 14% year-on-year.
The group still expects to produce up to 1.48 million ounces in its 2024 year, but first-half all-in-sustaining costs are expected to be between R830 000/kg and R855 000, below a guided R975 000.
The group cited higher-than-expected underground grades in South Africa and a strong performance from its Hidden Valley mine in Papua New Guinea for the result. – Fin24
Sasol keeps guidance unchanged
Chemicals and energy group Sasol reported it was keeping most of its 2024 guidance unchanged, but has lowered its expectation for its synthetic fuel plant in Qatar after bringing forward a planned shutdown.
The utilisation rate for 2024 is forecast to be 65% to 75%, from 80% to 90%, after a reactor coil leak was detected in October.
In its update for its second quarter to end December, Sasol said while prices in its chemicals business were up 6% from the first quarter, margins and associated profitability remain under pressure.
Mining productivity for its first half was 6% higher, but liquid fuel sales volumes were 1% lower than the prior year, driven by oversupply in the South African diesel market. – Fin24
Dis-Chem group buys property company
Pharmacy group Dis-Chem, South Africa's largest by store footprint, said a subsidiary had bought a property company for just over R478 million in a related-party transaction.
Columbia Falls is a rental property company and houses the Midrand distribution centre as well as the head office premises of Dis-Chem and currently earns a monthly rental from the group.
Dis-Chem said the transaction would ensure that Dis-Chem owns all its core distribution centres, as well as its head office premises in Midrand.
"The ownership of the asset is a long-term strategic objective of the group that has a positive impact on the income statement and a minimal impact on the balance sheet," it said. – Fin24