Pick n Pay’s performance remains divided, with Boxer continuing to excel, growing 12% for the 26 weeks to 25 August. In contrast, Pick n Pay South Africa shows a modest 0.1% overall growth, with volumes in decline despite inflationary pressures. Company-owned stores are outperforming franchises, but there are still challenges ahead. The group expects a 20-30% loss per share but anticipates improvements in the full-year results, largely due to interest cost savings after raising equity to reduce debt.
Meanwhile, Karooooo, the parent company of Cartrack, is experiencing strong growth, with a 17% increase in subscribers and a 31% increase in adjusted earnings per share. The company’s recurring revenue model is appealing to investors, with a notable 15% growth in subscription revenue. Despite some past missteps, the group’s strategic shift and the success of its logistics arm have driven the share price up by 57% this year.
On the other hand, ArcelorMittal’s stock, initially buoyed by news of China’s stimulus packages, has seen sharp volatility, reversing gains after the initial surge. While the potential for improvement in the Chinese market remains, the company’s financial struggles are evident, with an Ebitda loss of R466 million in the latest quarter. The company is seeking regulatory changes to support the industry, but government intervention may be needed before any benefits from Chinese stimulus materialize.