November 14, 2019 / 4:04 PM / a month ago

South Africa's Pepkor to take 1.2 bln rand charge in FY 2019

Nov 14 (Reuters) - South Africa retailer Pepkor Holdings said on Thursday it would take a charge of 1.2 billion rand ($80.62 million) in 2019 financial year related to its building materials arm, which has been hit with falling demand.

Pepkor - in which scandal-hit South African retailer Steinhoff International holds a 71% stake - said it expects annual headline earnings per share(HEPS), excluding the impairment charge, of 91 cents to 99.4 cents, higher than 84.5 cents reported in 2018.

The building materials division accounted for 13% of Pepkor’s revenue in 2018.

HEPS is the main profit measure for companies in South Africa that strips out certain one off items. Earnings per share would fall between 22.1% and 32.1%, Pepkor said.

Retailers in the country have been struggling as consumers tighten their belts to cope with higher taxes, fuel and electricity prices.

$1 = 14.8839 rand Reporting by Shanima A in Bengaluru; Editing by Anil D'Silva

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