Financial
resultsInvestment proposition
Massmart is a South African retail and wholesale distributor, with 305 stores in South Africa and 26 stores elsewhere in sub-Saharan Africa.
We are listed on the main board of the JSE Securities Exchange in the Consumer Services-Retail sector.
For more information on our investor communications, click through to our investor video clips by our CEO and CFO.
Strategic and structural clarity
- Massmart operates through four focused Divisions, each of these a leader in its target market and business model
- Additional value is created through inter-Divisional collaboration
- Behaviour is aligned through short-and long-term incentives
- Organic and acquisitive growth criteria is strictly adhered to
Management depth, quality and diversity
- The 44 Group and Divisional Executives hold 81 qualifications of which 62 are degrees, are an average age of 45 years, and 21% are African, Coloured or Indian.
Diversification
- Merchandise – Massmart is the second-largest distributor of consumer goods in Africa, and is the leading retailer of general merchandise, liquor, home improvement and building supplies, and the leading food wholesaler
- Formats – trading through a variety of formats
- Customers – serving all mass-market consumers
- Geography – operating in 12 sub-Saharan African countries
Low risk
- Earnings underpinned by high cash generation
- Limited financial leverage
- Conservative through-the-cycle store opening plans
Good governance
- Board composition – two executive and 7 non-executive directors of whom four are independent
- Recognised record of good disclosure
- Compliant with King III Report and the JSE SRI criteria
- Member of the Ethics Institute of Southern Africa
Growth
- Continuously improving the productivity of capital, space and labour
- Strengthening supply chain activities
- Upweighting Group private label efforts
- Inter-divisional collaboration
- Complementing store growth through targeted acquisitions and greenfield opportunities
- Expansion into food retail through Cambridge Foods, Game Foodco and Makro Fresh
