| Wed 24 Nov 2010, 8:56 | | MSM - Massmart Holdings Limited - CEO AGM Statement |
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MSM
MSM
MSM - Massmart Holdings Limited - CEO AGM Statement
Massmart Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1940/014066/06)
Share Code: MSM
ISIN Code: ZAE000029534
("Massmart")
CEO AGM Statement
At the Annual General Meeting of Massmart shareholders held at 08h30 on
Wednesday, 24 November 2010 the Chief Executive Officer of Massmart, Mr. Grant
Pattison, delivered the following statement:
"With consumer inflation and interest rates at their lowest levels in decades,
Massmart is performing much as expected. With low Food inflation, our Food
Retail and Wholesale businesses are under pressure. With low interest rates, our
General Merchandise and Home Improvement businesses are performing well.
"Whilst there is no indication that recessionary times will return, there does
seem to be some evidence that the consumer recovery may no longer be
accelerating but rather holding at current levels. Those consumers still
employed are doing well, but we have seen little recovery in employment levels
in general.
"The strengthening Rand continues to put our non-Rand based businesses under
pressure.
"For the first 21 weeks of the 2011 financial year, Massmart`s total sales
growth was 13.9% and comparable sales growth was 7.9%, with financial year-to-
date sales deflation running at 3.0%.
"Total and comparable sales growths in each Division are:
* 16.7%, 10.5% (9.5% deflation) in Massdiscounters;
* 10.2%, 8.0% (1.8% deflation) in Masswarehouse;
* 18.2%, 11.5% (0.4% inflation) in Massbuild; and
* 13.0%, 5.0% (0.5% deflation) in Masscash.
"We have opened and acquired 19 stores in this financial year, a 5.5% increase
in space. Each Division has opened a revised version of their main format:
* Makro Vaal has trialed a new store look and a new approach to the Fresh
category;
* Game N1 City trialed a full-line food store within the traditional Game
offering;
* Cambridge De Villiers Street, in downtown Johannesburg, trialed its new
look and the first branded store outside of KwaZulu Natal; and
* Builders Warehouse opened its first store in Durban in its small-store
format.
"Looking forward, we have planned for a Christmas trading period at the current
level of sales growth.
"On 27 September 2010, we advised shareholders that we had received a Non-
binding Expression of Interest from Wal-Mart Stores, Inc ("Wal-Mart"). We
updated shareholders as to the status of these discussions on 28 October 2010.
Discussions with Wal-Mart continue positively.
"We are in communication with all major stakeholders concerning their interest
in this potential transaction, recognising of course our regulatory obligations
during an offer period.
"We will make further announcements when necessary."
Johannesburg
24 November 2010
Sponsor to Massmart:
Deutsche Securities (SA) (Proprietary) Limited
Date: 24/11/2010 08:56:53 Produced by the JSE SENS Department.
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