The Daily Update: 19 July

The latest updates from the JSE and NYSE over the past 24 hours.

South Africa

CPI

• Annual CPI inflation slowed to 5.4% from 6.3% in May.

Coronation Fund Managers Limited

• Total assets under management are R627 billion as of 30 June 2023.
• In September 2022, assets under management were R574 billion.

Pick n Pay Stores Limited- Trading statement and trading update

• Group sales for the 20-week period increased by 4.8%, with South Africa sales growth at 4.4% (0.9% like-for-like) and Rest of Africa segment sales growth at 15.9% (12.0% on a constant currency basis).
• Stand-alone clothing stores saw sales growth of 10.9%, and Group liquor sales grew by 9.8%. Online sales continued their strong growth momentum with 75.3% growth.
• South Africa sales growth was constrained by a slow performance from Pick n Pay, with a decline of 0.3% (0.0% like-for-like). Boxer sales accelerated moderately at 15.4% (3.0% like-for-like).
• Group South African internal selling price inflation for the period was 9.5%, well below Statistics SA Food CPI of 13.2%.
• The company issued guidance for H1 FY24, expecting a decrease of more than 20% in EPS due to various factors, including energy costs, supply chain duplication, and restructuring costs.

ArcelorMittal South Africa Limited- Trading statement and business update

• EPS are expected to decrease from R2.76 profit per share to a loss within the range of R0.30 and R0.38 per share, representing a decrease of between 111% and 114%.
• The international trading environment improved in the first half of 2023 due to the end of de-stocking and favorable energy prices, but the local trading environment faced challenges.
• Electricity loadshedding, high inflation, interest rates, and negative growth in key steel-consuming sectors affected consumer confidence in the local market.
• The company implemented flexible operating approaches and cost adjustments based on the order book and cash management process.
• However, the severity of electricity loadshedding in the last six months was underestimated, leading to difficulties in adjusting production responsively.
• The weaker pricing environment and cost compressibility challenges are expected to result in a substantially weaker financial performance compared to the comparable period.
• The company faced difficulties in releasing working capital, leading to elevated levels of net borrowings.

Super Group Limited

• Super Group has acquired 78.82% of the equity of CBW Group Holdings Limited (trading as Amco) for a purchase consideration of GBP 30.3 million.
• Amco is a transport and logistics business headquartered in the UK, with 11 operating locations and hubs across Europe. They serve over 250 active UK and European customers in various manufacturing sectors.
• The acquisition was made through Super Group's 100% owned UK subsidiary, SG International Holdings Limited.
• Amco generated EBITDA of GBP 9.2 million, Profit Before Tax of GBP 8.36 million, and Profit After Tax of GBP 6.65 million for the twelve months ended 30 June 2023.
• The acquisition has no outstanding conditions precedent, and the effective date is 19 July 2023.