Research archive for MSM

Massmart cracked a sales update that surprised the markets, "total sales increased to R78.2 billion, representing total growth of 10.4% over the prior 52 week period, with product inflation estimated at 4.8%." Massbuild, the Builders Warehouse stores, increased 14.6 percent. People love that place, long queues, people getting stuff that they don't need. I am kidding, the warehouse model works really well. Masswarehouse, the Makro brand, increased 11.9 percent, it seems that the higher end element of their stores have done better. Results around the 26th of February. The stock traded positive on a day that the market got thumped, there has been an element of PE unwind, since all the retail stocks peaked at the beginning of 2013, since then it has been tough going.

Yesterday we received a trading update for the 44 week period up to 2 November from Massmart which looked solid. Why 44 weeks? It coincides with the analyst store visit. Lets look at the numbers.

Today we received half year results for the period ending 29 June 2014 from one of our favoured retailers Massmart. Let us look at the financial highlights first and then look at the divisional reviews.

Yesterday we received a very positive trading update from Massmart for the first half of the year. In fact it was great when you consider the current tough consumer environment we are supposedly facing. For the period ending 29 June 2014 sales grew 10.2% to R35.7 billion. Inflation came in at 4.8% while comparable sales increased 7.1%. Here is the divisional breakdown.

Over the past few days two recommended stocks, Famous Brands and Massmart have announced expansion plans outside of South Africa. It is one of the beautiful things about investing in equities, the world is sometimes your oyster. Companies can search for areas (on your behalf) where there is growth potential, they do the hard yards to get there and as an investor you benefit. Assuming of course that they get it right.

Massmart reported numbers yesterday morning for the 53 weeks ending December 29 2013. I was quite struck by an interview on CNBC Africa yesterday with CEO Grant Pattison in which he had said core earnings were flat to down, and a weakening Rand made quite a big difference. But it is tough out there, flat really. Comparable stores, comparable period sales were up around 3.8 percent, wages are a big problem as are rental increases. That said, Massmart managed to keep their employment and occupancy costs in check, a great achievement in this environment.

Yesterday we received trading updates from 2 of our big retailers, namely Massmart and Woolworths. Let's start with Massmart.

Yesterday Massmart came out with a sales update for the 46 weeks, the reason for the weird timing is due to an analyst road show, to have a look at a couple of their stores. Here is an extract from the SENS announcement.

This morning Massmart released results which looked very muted. Here is the PDF presentation Reviewed Consolidated Results for the 26 Weeks Ended 23 June 2013.

Yesterday we received a trading statement for the half year from Massmart which has disappointed the market. The share price is down 8% since the release. Let's take a look at the numbers.

Yesterday we received a sales update from Massmart. These come in quarterly so to refresh your memory lets first look at the numbers from the first quarter of the year released in April.

On Wednesday we received a very informative and encouraging sales update from Massmart. Not because the numbers were good but because it gave some clarity of how operations are going within the business. Let's look at the commentary, then the numbers.

Yesterday we saw a Massmart sales update which not only disappointed Massmart shareholders but the whole sector which fell over 2%. The sector is down 1.7% again today and has lost 13% this year. Let's look at the numbers and then the repercussions.

This morning we received results from Massmart for the 26 weeks ended 23 December 2012. Remember they released an update a few weeks ago which showed us more or less what earnings were going to look like, I covered it here, Massmart trading update, building for the future. Well no more speculation, here is what the company has done in the past 6 months.

Yesterday Massmart released an informative trading update which told us what to expect in terms of earnings for the 26 week period ending 23 December 2012. Before we delve into the numbers they explain the once off effects. Last year's earnings included transaction costs, mostly integration costs following the Wal-Mart deal. That pushed the base down. This year the company is still facing integration costs as well as a R140m increase to the Supplier development fund. That total of that fund is R240m. That is a lot of money for a company who made R865 million in the comparable 6 month period last year.