COMPANY NEWS IN BRIEF

Pick n Pay ups dividend by a quarterPick n Pay’s strategy to split its core Pick n Pay offering into two distinct brands is gathering momentum, with the retailer saying it has rolled out 134 stores under the new banners with "strong initial results". Reporting double-digit profit growth for the 26 weeks ended 28 August, the JSE-listed firm said that so far 93 stores had been rolled out under the QualiSave brand, with a further 41 refurbished under the new Pick n Pay banner. The group upped its interim dividend by 25.3% to 44.85c per share, with its value brand Boxer faring best, though this was partly due to a hit from civil unrest in the prior year.In May, the retailer announced a move to split the main brand into QualiSave, which is aimed at the lower-to-middle income customers and Pick n Pay, whose focus will be the middle-to-top-end of the market. The new strategy is being rolled out over the next four financial years.At the same time, the group will significantly expand its successful value brand Boxer as it looks to entrench its position in the middle-to-lower-income segments. Pick n Pay, which flagged its strong results to the market earlier this month in a trading update, said group turnover rose 11.5% to R51.3 billion, while its profit before tax, on a pro-forma basis excluding R145.2 million business interruption insurance proceeds, jumped 22.2% to R588 million. Boxer's sales jumped 27.2%.On the same pro forma basis headline earnings per share increased 25.3% to 88.76c. Pro forma earnings also excludes all non-cash hyperinflation gains and losses related to its TM supermarket business in Zimbabwe.-Fin24FNB expects first interest rate cut in 2024The repo rate in South Africa will likely peak at 7.25% by the first quarter of next year, above the pre-pandemic level of 6.5%, FNB forecasts in its latest property barometer. Furthermore, the bank pencils in "a moderate rate cut" in the first quarter of 2024.The SA Reserve Bank (SARB) again hiked the repo rate by 75 basis points in September amid concerns over rising inflation. The repo rate is now 6.25%, and the prime rate 9.75%. There is still one more SARB monetary policy committee meeting left for this year, in November."Higher inflation expectations have driven more aggressive policy tightening in advanced markets and should result in the SARB further front-loading interest rate hikes," states the FNB barometer report."Steeper-than-expected interest rate hikes and slower wage growth mean housing affordability is becoming more stretched, suggesting the market will slow further in the coming months." Property market activity weakened further in the third quarter of 2022 as reflected in properties remaining on the market for longer before being sold. In the second quarter, the average time on the market was 9 weeks and 4 days. In the third quarter, it was 10 weeks and a day.The latest barometer shows the FNB House Price Index moved lower in September, averaging 3.1% from 3.4% in August. -Fin24Dis-Chem withdraws moratorium on hiring of whitesJSE-listed Dis-Chem has done an about turn, withdrawing an internal memorandum to staff from its founder and CEO Ivan Saltzman that called for a moratorium on hiring white people at the pharmaceutical retailer.The group, whose original memo was aimed at improving its employment equity targets, said in a "communique" from its board that it regretted offending staff and customers, and vowed to improve internal processes around what it communicated in the future. After initially standing by the memo on Friday, the company said on Monday it regretted the "wording and tone" of the memo, adding it had "been erroneously widely shared"."We acknowledge that it did not reflect our values. Its release did not follow our correct internal vetting processes and steps have been put in place to ensure that, going forward, relevant checks and balances are thoroughly duly performed."It said that "more importantly" it regretted the "offence and distress it caused to so many people, including our staff and millions of loyal customers", adding it valued all its employees and appreciated their contribution to the group.On Friday, the retailer had told News24 Business that the "memo still stands, and Dis-Chem reiterates its commitment to the transformation journey". In the memo to senior management dated 19 September, Saltzman had announced the moratorium, which includes external appointments and internal promotions.–Fin24

COMPANY NEWS IN BRIEF

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