Massmart 26 week trading update

Massmart released a trading update yesterday, it looked pretty good to me. A copy and paste is in order here: "The Group's total sales for the 26 weeks to December 2011 increased to R31.6 billion, representing growth of 15.2% over the prior 26-week period, with year-to-date inflation estimated at 1.1%. Comparable store sales increased by 9.2%." The first half, because it includes the festive season is always going to be a much better half than the second half. The second half of course includes the penny pinchers month, January. Which also happens to be the month that both my youngest daughter and wife share a birthday, on the same day. I have been looking at some of the Massmart discounts, and it definitely seems like the WalMart muscle is going to work out really well for the consumers of the goods. And lower inflation at the same time.

Here is a divisional breakdown:

* Massdiscounters grew by 11.5% (4.6% comparable) with deflation of 5.0%;

* Masswarehouse grew by 18.4% (11.6%) with inflation of 2.3%;

* Massbuild grew by 12.8% (8.7%) with inflation of 0.5%; and

* Masscash grew by 16.5% (10.9%) with inflation of 5.2%.

In case you needed some quick reminders on the company, Massdiscounters is Dion and Game, Masswarehouse is Makro, Massbuild is Builders Warehouse, Builders Express and Builders Trade depot, whilst Masscash includes the Jumbo and Shield, CBW and Cambridge Food brands. Cambridge Foods is the most recent brand to join the Masscash stable. In short, strong growth across all of the portfolios, and the share price responded correspondingly, the stock up 1.59 percent to close at 18235. That is right, that is the price. An all time high for the stock. The 26 week results will be released on the 22nd of February, I am guessing that we are all pumped for that!