COMPANY NEWS IN BRIEF

Dis-Chem takes profit hitWhile pharmacy group Dis-Chem is growing revenue, profits are under pressure as it fights for market share in a tough economy.Group revenue rose 9.4% to R17.9 billion in the six months to end August, the group announced on Friday, or just over 10% when excluding the effect of Covid-19 vaccines in the prior period.But headline earnings fell about 17% to just under R500 million, with margins under pressure in personal care and beauty as the retailer picked up its promotional activity.The group is also still feeling the effects of a boycott from some customers following a leaked internal memo, which announced a moratorium on hiring white people.In March this year, Dis-Chem estimated that between 5% to 8% of its white, coloured and Asian chronic medicine clients ditched the group.This put pressure on its performance in the second half of its prior year, which carried through into the first quarter of its current year, it said on Friday."During the current financial year, the group was impacted by the base effects of the prior year's performance, which were distinctly different across the two halves of the year," CEO Rui Morais said during an investor presentation.-Fin24Barclays targets rich South AfricansBarclays Plc doubled its private banking business in Africa as the UK lender added ultra-wealthy clients in the past year from Credit Suisse through a referral agreement, according to Amol Prabhu, the bank’s head of African markets. Under the deal, a team of 20 employees based in Dubai, Zurich and London also joined the African private banking unit.Growth in the region has been about 30% year-on-year, Prabhu said in an interview at Bloomberg’s Johannesburg office. The move by Credit Suisse private bank clients has "been significant for us from a private bank perspective," Prabhu said.The African unit consists of private, corporate and investment banking. That’s after it exited retail as the lender disposed of its entire holding in Absa Group Ltd. in August last year. Barclays’ pivot to service African billionaires and wealthy individuals and families brings its focus to South Africa, Nigeria, Ghana and Kenya, said Prabhu. Private deals have recently included sectors such as agritech and fintech, he said.Wealth, and the corporate and investment banking needs that flow from rich families, are concentrated in a few countries on the continent, and within those, in a few families.South Africa has 37 800 high-net-worth individuals, according to data-platform Statistica. In Nigeria, which vies with South Africa as Africa’s largest economy, there are 9 800 millionaires.-Fin24Pepkor reports better second halfPEP and Ackermans owner Pepkor said after a mishap with a summer range, it had a stronger second half, carving out some market share gains and seeing an uptick in sales on credit.Group revenue for the year ended September increased by 7.7% to R87.4 billion, it said in a trading update, with retail selling price inflation in PEP, Ackermans and Speciality - which includes shoe brands such as Tekkie Town - of 7.3%.PEP achieved "very pleasing" results with like-for-like sales growth of 9%, it said, with market share gains in babies, adult and home products. PEP's credit sales mix increased to 4% of total sales, from 0% historically, and at a group level, credit sales picked up to 10% from 8%. Trading in Ackermans showed a marked improvement, it said, with like-for-like sales declining by just over 1% compared to a decline of 8% at its half-year.Good progress was made in clearing underperforming merchandise through markdowns, resulting in improved inventory levels, it said.The group had reported a tough first half amid general pressure on consumers but has also acknowledged Ackerman's didn't get its summer fashion range at Ackerman's just right.Ackermans gained share in school wear, younger girls' wear and lingerie, it said, while JD Group expanded market share in computer products and audio equipment.-Fin24Vitol Energies to takeover EngenThe Competition Commission has given the nod to a takeover of Engen by Dutch-Swiss commodities group Vitol Energies, but with a raft of conditions, including procuring locally refined products, and boosting black ownership in the value chain.The Competition Commission, which acts as an investigating body, had raised a number of concerns, including that Engen was the primary customer for local refiners, it said in a statement. There was a potential that there may be displacement by imports."The Commission has recommended that the Competition Tribunal approve the proposed transaction whereby Vitol intends to acquire Engen, with conditions," the commission said in a statement. Parties have agreed to a number of conditions, it added, including continuing to procure locally refined petroleum products for a long-term duration and investing a set amount over five years in capital investments and production commitments.It must also develop suppliers owned by historically disadvantaged persons (HDPs), establish a new employee share ownership plan, increase the number of HDP-owned retail stations. There is also a moratorium on merger-specific retrenchments, it said, without going into any specific detail.-Fin24

COMPANY NEWS IN BRIEF

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Namibian Sun 2025-05-02

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COMPANY NEWS IN BRIEF

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Namibian Sun 2025-05-02

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