COMPANY NEWS IN BRIEF
South Africa's Dis-Chem Pharmacies posts 1.6% annual profit fallSouth African pharmacy chain Dis-Chem Pharmacies reported a 1.6% decline in full-year earnings on Friday reflecting a strong previous year and absence of COVID-19 vaccine administration and testing services.
Headline earnings per share, a key profit measure in South Africa, fell to 114.7 cents in the year ended Feb.29 from 116.3 cents.
Dis-Chem said the group was impacted by the "base effects" of the prior year's performance, whose stronger first-half benefitted from the acquisitions of warehouse properties, which resulting in a one-off gain.
The current reporting period also had no contribution from COVID-19 vaccine administration and testing services, which have ended.
The company said revenue however, rose by 11.1% to R36.3 billion rand (US$1.93 billion) with retail revenue up 9.7% to 31.7 billion and comparable pharmacy store revenue up 6.9%.
In February the company said revenue from September 1 to January 28 was buoyed by strong sales growth in personal care and beauty as well as in baby products.
-REUTERS-
Nigeria secures $500 million World Bank loan for electricity sector
Nigeria has secured a $500 million World Bank loan for its electricity sector to boost power distribution, after last month's hike in tariffs for top consumers in Africa's most populous nation.
The Bureau of Public Enterprise (BPE), the country's privatisation agency, on Thursday said the loan was approved by the World Bank in 2021 and included the government's borrowing plan this month after achieving some milestones.
The concessionary loan is aimed at improving the financial and technical performance of distribution companies, which have struggled to increase capacity more than a decade after Nigeria handed over its electricity sector to private companies.
Last month the electricity regulator increased tariffs for better off consumers who use the most power in Nigeria as the government aims to wean the economy off subsidies to ease pressure on public finances.
The World Bank has in the past recommended subsidy cuts to help Nigeria improve the state of its public finances.
Nigeria's electricity sector faces a myriad of problems including a failing grid, gas shortages, high debt and vandalism.
The country has 12,500 megawatts of installed capacity but produces only about a quarter of that, leaving many Nigerians reliant on expensive diesel-powered generators.
-REUTERS-
Nigeria's NNPC plans to expand natural gas stations for domestic use
Nigeria's NNPC said it plans to build six compressed natural gas (CNG) service plants with local firm Axxela to expand access to alternative fuel for cars and industries after commissioning its first plant in Lagos on Thursday.
The plan is part of the oil- and gas-rich nation's effort to lower transportation costs which skyrocketed as petrol pump prices rose last year following the removal of costly gasoline subsidies, angering the public.
On Thursday, state oil firm NNPC said it commissioned a CNG station in Lagos, with capacity to deliver 5.2 million standard cubic feet (mmscf) of gas per day to serve around 3,700 cars daily, supply gas to industries and other companies.
It also said it has reached a final investment decision with Axxela on new plants.
"Although the elimination of the premium motor spirit (petrol) subsidy has brought difficulties, it has also given us a once-in-a-lifetime chance to invent and adopt more economical, efficient, and sustainable energy alternatives," Nigeria's minister in charge of gas resources, Ekperikpe Ekpo, said.
Nigeria has turned to gas as an alternative fuel after it scrapped a popular but costly subsidy on petrol that has seen the petrol pump price rise sharply, angering motorists and businesses that use petrol to generate their own power.
The government hopes the switch to CNG will lower costs and boost clean energy use in Africa's top oil exporter.
The Lagos state government at Thursday's commissioning said it will deploy over 2,000 new CNG buses and 2,500 conversion kits before the end of the year.
-REUTERS-
New international flight planned for South Africa
Qantas and Perth Airport are working on a massive commercial agreement, with the airline planning to launch a flight between Perth and Johannesburg.
As part of a new 12-year agreement, Perth Airport plans to invest roughly AU$3 billion (R37 billion) in new terminal facilities and a new parallel runway.
This forms part of Perth Airport’s AU$5 billion (R62 billion) capital investment program, which will deliver two multi-storey car parks, major access roadworks, and the airport’s first hotel.
Terminal 3 and 4 upgrades will also allow Qantas to add services and more destinations from Perth, including Auckland and Johannesburg, subject to meeting border agency requirements.
Qantas currently offers direct flights between Johannesburg and Sydney.
The potential move could be a significant blow for South African Airways (SAA), which relaunched its flights between Johannesburg and Perth in April of this year as part of its planned revival.
-BUSINESS TECH-
Takealot moves to the next level – crushing Amazon in South Africa
After Amazon South Africa’s launch, Takealot moved to the next level, and the latest Google Trends data shows that Takealot is winning the war.
Amazon South Africa opened its marketplace on 7 May 2024, offering local shoppers a wide range of products and shipping options.
Amazon has partnered with Pargo and The Courier Guy to serve its local delivery and logistics needs. Shoppers have the option of door-to-door delivery or pickup points.
The eCommerce giant added a sweetener to new clients by offering free delivery on their first purchase.
Amazon did not start its race from a standing start. It has a strong following in South Africa – many people use its United States website.
Discovery Bank’s SpendTrend24 report showed Amazon’s US website is the third most visited eCommerce platform in South Africa.
There was great excitement when Amazon launched in South Africa. However, it was more whimper than bang.
At this stage, Amazon does not offer South Africans much they cannot get at Takealot. On many products, it is much cheaper to buy and import them from Amazon’s US site.
Takealot was quick to make Amazon’s life even more difficult by launching aggressive specials and TakealotMORE, a new subscription service with great benefits.
Takealot shoppers can choose between the TakealotMORE Standard plan, which costs R39 per month, and the TakealotMORE Premium plan, which costs R99 per month.
The premium plan offers unlimited free standard and same-day delivery, collect options, and free delivery of Mr D’s orders from restaurants and shops.
Takealot Group CEO Frederik Zietsman said TakealotMORE are “revolutionising the online shopping experience and redefining convenience and value”.
Takealot, backed by Naspers, has deep pockets, and its quick moves following Amazon’s launch show it is ready for the fight.