COMPANY NEWS IN BRIEF
Pepco reports revenue surgeSteinhoff’s European discount retailer Pepco says its revenue surged by about a quarter over the key festive period, with record trading days across its brands, as it benefited from its ongoing store rollout, its status as a discount retailer in tough economic conditions, as well as a healthy stock position.
Pepco, the owner of the discount Pepco and Dealz brands in mainland Europe and Poundland in the UK, said in an update on Thursday group revenue rose 27% in constant-currency terms to €1.65 billion (R30.1 billion) in the quarter to end December from a year prior, rising 24% on an actual basis - which includes currency effects.
Pepco added 105 new stores during the quarter, bringing its total to 4 066, and it operates in 19 territories, including the UK, Italy, Greece and across eastern and central Europe.
Steinhoff holds more than three quarters of Pepco, which accounts for about half of its revenue, and listed in Warsaw in 2021.
Pepco said on its value-proposition as a discount retailer had proved successful in the current economic environment, with inflation remaining elevated across its markets, although inflation in clothing and footwear is running significantly below the headline rate.
Inflation has surged across the eurozone in the wake of Russia's invasion of Ukraine, notably pushing up energy prices, but also food prices. Eurozone inflation hit a record high of 10.6% in October, although it then eased a little, falling to 9.2% in December.-Fin24
Mango sale in jeopardy
A "sudden turn of events" in that Minister of Public Enterprises Pravin Gordhan has not yet approved the sale of Mango, means the transaction may have to be abandoned and the airline wound down.
This is according to the latest status report to creditors released by the airline's business rescue practitioner, Sipho Sono.
An updated application for approval in terms of the Public Finance Management Act (PFMA) had been submitted to Gordhan by Mango's parent company South African Airways (SAA) on 28 November 2022. In his previous status report at the beginning of December 2022, Sono indicated that the updated application addressed issues raised by SAA against the sale.
In that previous report, Sono indicated that he was "hopeful" that Gordhan will approve the sale of the low-cost airline "imminently".
Sono states in his latest report that, regrettably, Gordhan has not made a decision yet. The PFMA allows for an application to be deemed as approved if there is no response within 30 days. However, SAA and its shareholder, the Department of Public Enterprises (DPE), agreed on an extension period.
"We understand that the minister wrote to SAA on or about 20 December 2022, expressing a view that he was not completely satisfied with the responses to the queries that were raised by SAA [about the Mango sale]," states Sono's report.
It is also his understanding that National Treasury has indicated to SAA that it does not regard SAA's application to the DPE as complete and would also like to have a submission made directly to it.-Fin24
State probing fatal incident at Astral Foods
Inspectors from the Department of Employment and Labour are probing an incident at a Western Cape poultry facility belonging to Astral Foods that resulted in the deaths of two workers and the hospitalisation of five others.
The incident, which occurred on Sunday at a waste disposal site separated from Astral’s main County Fair facility in Klipheuwel, Agter Paarl, resulted in the affected workers developing breathing difficulties.
Department of Employment and Labour acting spokesperson Mokgadi Pela told News24 the department was aware of the incident and had dispatched inspectors to the site to conduct a preliminary investigation.
"When any such incident is reported to us, we dispatch inspectors to the scene. We then allow them to do their preliminary investigations before any preliminary report can be issued. So we normally ask the public to give them time to conduct and conclude their preliminary investigation."
He said that after the investigation, the inspectors would be able to issue the preliminary report with recommendations.
"Let’s not rush them, lets allow them to conclude the process."-Fin24