Massmart’s full-year sales jump 10.4%

JOHANNESBURG (Reuters) – South African retailer Massmart Holdings Ltd reported a 10.4 percent jump in full-year sales on Thursday as its consumer goods, liquor and home improvement supplies business posted better performance.

Massmart, majority owned by Wal-Mart Stores Inc, however, said net interest paid from funding several property acquisitions in 2013-2014 led to a 10.2 percent drop in headline earnings.

Sales climbed to 78.2 billion rand ($6.82 billion) for the 52 weeks ended Dec. 28.

Massdiscounters, which includes general merchandise discounter Game that operates in 11 African countries and high tech retailer, DionWired, with 23 stores, reported a 10,2 percent increase in sales, the company said in a statement.

Industry wide retail sales in South Africa rose 3.4 percent year-on-year in December, above market expectations and higher than a revised 2.5 percent expansion in November.

Massmart said expansion in sub-Saharan Africa was a "priority" and it planned to open 13 new stores but was concerned about the sales in South Africa and in oil revenue dependent countries such as Ghana and Nigeria where it operates.

"We remain concerned by the relatively fragile South African consumer economy and we are cautious about the impact of lower oil prices on those larger African countries with some dependency on oil revenues," the statement said. ($1 = 11.4610 rand)