For the 34 weeks to 21 August 2016, total sales increased by 8.3% and comparable sales increased by 5.9%. For the remainder of 2016, the South African economic environment will likely continue to constrain consumer spending across key Group categories including General Merchandise and Home Improvement/DIY, whilst our substantial Food and Liquor categories will likely continue to outperform. Notwithstanding the current uncertainty, should the currency strengthen and Food pricing move into disinflation, it is possible that trading in 2017 may be relatively better than 2016. Trading conditions in most non-SA countries where we have stores are unlikely to deteriorate further provided there are no exogenous shocks.

The financial information on which this outlook statement is based has not been reviewed and reported on by the Company’s external auditors.

 

Dividends

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 74.10 cents per share, in respect of the period ended 26 June 2016 has been declared. The number of shares in issue at the date of this declaration is 217,136,334.  

The dividend has been declared out of income reserves as defined in the Income Tax Act, 1962, and will be subject to the South African dividend withholding tax (“DWT”) rate of 15% which will result in a net dividend of 62.985 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, 13 September 2016
First trading day ex dividend on the JSE:
Wednesday, 14 September 2016
Record date:
Friday, 16 September 2016
Payment date:
Monday, 19 September 2016

Share certificates may not be dematerialised or rematerialised between Wednesday, 14 September 2016 and Friday, 16 September 2016, 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 Ground Floor, 70 Marshall Street, Johannesburg 2001; PO Box 61051, Marshalltown 2107; on 011 370 5000; or on 086 110 09818 (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

Guy_Hayward_Signature                          Hans

Guy Hayward                         Johannes van Lierop
Chief Executive Officer           Chief Financial Officer
24 August 2016