MSM: MASSMART HOLDINGS LIMITED - Sales Update For The 43 Weeks Ended 28 October 2018
MSM: MASSMART HOLDINGS LIMITED - Sales update for the 43 weeks ended 28 October 2018 Sales update for the 43 weeks ended 28 October 2018 Massmart Holdings Limited (Incorporated in the Republic of South Africa) (Registration Number: 1940/014066/06) Share code: MSM ISIN: ZAE000152617 (`Massmart´ or `the Company´) Sales update for the 43 weeks ended 28 October 2018 On 6 November 2018 Massmart is hosting members of the investment community in our stores in Lusaka, Zambia. As part of this visit, the following sales update is being provided: Sales growth has improved since our previous update which was for the 33 weeks to 19 August 2018. All four divisions and the four major product categories reported higher sales growths, apart for Massbuild and the DIY category where sales growths have slowed slightly after week 33. Massmart´s total like-on-like sales for the 43-week period amounted to R70.5 billion and represents an increase of 3.5%, with comparable like-on-like store sales increasing by 1.7%. Product deflation is estimated at 0.4%. On that same basis total sales from our SA stores for the 43-week period increased by 3.5%, while comparable sales increased by 2.0%. Total sales from our ex-SA stores measured in constant currencies* for the 43-week period showed sales growth of 5.0% with comparable sales declining by 0.1%, while in Rands these were an increase of 3.4% in total and a decline of 1.8% on comparable store sales. As noted in previous announcements this year, for statutory reporting purposes Massmart will be adopting IFRS 15 and will be using the `modified retrospective approach´, which requires that the comparative period not be restated. This non-restatement makes comparison with the prior period difficult, particularly as Shield´s sales (in Masscash) are included in revenue on a gross basis during 2017. Using this modified retrospective method per IFRS 15, total sales for the 43-week period of R70.5 billion represents a decline of 1.5%, with comparable store sales declining by 3.3%. The information above has not been audited or reviewed or otherwise reported on by the Company´s external auditors. `* The constant currency information included in this sales update has been presented to illustrate the Group´s underlying ex-SA business performance, in terms of sales growth, excluding the effect of foreign currency fluctuations. In determining the application of constant currency, sales for the prior comparable financial reporting period have been adjusted to take into account the average daily exchange rate for the current period. The table below depicts the percentage change in sales in both reported currency and constant currency for the given material currencies. Sales growth in: Reported Currency Constant Currency Mozambique Metical 12.7% 8.9% Nigerian Naira -6.3% -0.6% Zambian Kwacha 17.1% 25.9% Johannesburg 5 November 2018 Sponsor: JP Morgan Equities South Africa (Pty) Ltd Date: 05/11/2018 04:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.