For the 34 weeks to 20 August 2017, total sales amounted to R56.2 billion, representing an increase of 1.0% over the prior year 34-week period. Comparable store sales decreased by 0.9%. Product inflation is estimated at 2.7%.
Continued high levels of economic volatility and political uncertainty complicate any useful outlook, however it is likely that sales growth may improve slightly in the second half of 2017 compared to the first half. This improvement comes from a combination of lower inflation, a steady Rand, lower interest rates in South Africa, and higher reported Rand sales from our ex-SA stores following the recent annualisation of the extreme weakness of several African currencies. Shareholders are reminded that the financial year to December 2017 is a 53-week trading period.
Massmart’s current dividend policy is to declare and pay an interim and final cash dividend representing a 2.0 times dividend cover unless circumstances dictate otherwise. Notice is hereby given that a gross interim cash dividend of 76.00 cents per share, in respect of the period ended 25 June 2017 has been declared. The number of shares in issue at the date of this declaration is 217,145,489. The dividend has been declared out of income reserves and will be subject to a local dividend withholding tax (“DWT”) rate of 20% which will result in a net dividend of 60.80 cents per share to those shareholders who are not exempt from paying dividend tax. Massmart’s tax reference number is 9900/196/71/9.
|The salient dates relating to the payment of the dividend are as follows:|
|Last day to trade cum dividend on the JSE:|
|Tuesday, 12 September 2017|
|First trading day ex dividend on the JSE:|
|Wednesday, 13 September 2017|
|Friday, 15 September 2017|
|Monday, 18 September 2017|
Share certificates may not be dematerialised or rematerialised between Wednesday, 13 September 2017 and Friday, 15 September 2017, both days inclusive.
Massmart shareholders who hold Massmart ordinary shares in certificated form (“certificated shareholders”) should note that dividends will be paid by cheque and by means of an electronic funds transfer (“EFT”) method. Where the dividend payable to a particular certificated shareholder is less than R100, the dividend will be paid by EFT only to such certificated shareholder. Certificated shareholders who do not have access to any EFT facilities are advised to contact the company’s transfer secretaries, Computershare Investor Services at Rosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196; on 011 370 5000; or on 086 11 00 9818 (fax), in order to make the necessary arrangements to take delivery of the proceeds of their dividend.
Massmart shareholders who hold Massmart ordinary shares in dematerialised form will have their accounts held at their CSDP or broker credited electronically with the proceeds of their dividend.
On behalf of the Board
Johannes van Lierop