| Thu 23 Feb 2006, 7:00 | | Massmart - Reviewed consolidated results for the 2 |
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MSM
MSM
Massmart - Reviewed consolidated results for the 26 weeks ended December 2005
Massmart Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1940/014066/05)
Share code: MSM
ISIN: ZAE000029534
("Massmart" or "the company")
Massmart - Dedicated to Value
Reviewed consolidated results for the 26 weeks ended December 2005
Massmart is a managed portfolio of 11 wholesale and retail chains, each focused
on high volume, low margin, low cost distribution of mainly branded consumer
goods for cash, in ten countries in sub-Saharan Africa. The Group is the third
largest distributor of consumer goods in Africa, the leading retailer of general
merchandise, liquor and home improvement equipment and supplies, and the leading
wholesaler of basic foods.
Sales increase 14% to R15 916 million
Trading profit increases 35% to R777 million
Headline earnings increase 28% to R515 million
Headline earnings before acquisitions increase 20% to R481 million
Headline EPS increases 28% to 258,2 cents
Cash flow from operations increases 40% to R1 621 million
Distribution to shareholders increases 17% to 130 cents per share
Overview
We are pleased to report record first-half sales, profits, cash flow and
profitability. This is Massmart"s 34th consecutive half-year of real sales
growth and our 15th consecutive half-year of headline earnings per share growth.
Notwithstanding a favourable consumer economy, this result is particularly
gratifying for a predominantly cash retailer and wholesaler, operating in a
deflationary environment.
The highlights of the half-year were:
* Record first-half sales of R15,9 billion, 6,4% of which was from 19 foreign
stores.
* Given estimated average inflation of zero, real comparable store sales grew
5,2% and real sales before acquisitions grew 7,8%.
* Consumer credit sales comprised 2,6% of Group sales.
* Trading profit before tax grew almost three times faster than sales to R801
million, 82% of the full-year trading profit to June 2005.
* Pre- and post-interest operating profit margins increased to 4,9% and 5,0%
respectively.
* Cash flow from operations rose 40% to exceed R1,6 billion.
* Rolling 12-month return on equity increased from 41,8% to 43,9%.
* The store network was increased to 222 (882 205 m2) with the opening of eight
new stores and the acquisition of one store with combined estimated annual sales
of over R1 billion.
Environment
Over four years ago we were among the first commentators to recognise the
structural change in the South African consumer economy, which resulted from
increasing middle and upper income Black consumer expenditure. In December last
year, the South African Advertising and Research Foundation released their 2005
All Market and Product Statistics (AMPS), which attempted to quantify this with
some accuracy, reporting that Black consumers in middle and upper Lifestyle
Measurement Categories (i.e. LSM 7 - 9) increased by 704 000 or 60% between 2001
and 2005 with a 421 000 or 29% growth between 2004 and 2005. Seen from a
different perspective, from 2004 to 2005, 439 000 more Black consumers moved
into the R7 000 to R12 000 per month household income category.
Massmart has been a beneficiary of this transformation of the South African
consumer economy, the growth of which has been further enhanced by low
inflation, low interest rates and a strong rand. These factors have resulted in
a sustained period of consumer confidence - which reached its 2005 high in the
last quarter - and in a high but gradually declining growth of retail sales.
Performance
This half-year result demonstrates Massmart"s unique strategic positioning, its
structural focus and the efficacy of its business model.
Massmart"s sales growth continues to be affected by the policy announced in
February 2005, to curtail sales of low return business of high risk.
Acquisitions, comprising Federated Timbers, De La Rey, Servistar, Cell Shack and
a cash and carry outlet, contributed sales of R1 038 million. Comparable store
growth of 5,2% was depressed by deflation in general merchandise and the impact
of the stronger rand on foreign sales. General merchandise, including home
improvement, grew 22,5% and food and liquor 8,7%. Massmart"s estimated average
inflation of zero on selling prices was the weighted average of 2,0% deflation
in general merchandise, including home improvement, inflation of 1,4% in food
and 7,2% in liquor.
Industry statistics and the reported sales of competitors indicate that Massmart
gained market share, particularly in appliances, home improvements and liquor,
which each grew well ahead of the Group"s sales growth.
Despite a R16,8 million negative effect of foreign exchange movements, trading
profit before acquisitions grew 25,8% to R726,1 million. Headline earnings per
share before acquisitions grew 20% to 241 cents per share.
Operational review
6 months 6 months
ended ended
December December
2005 2004
Restated
for IFRS
Rm (Reviewed) (Reviewed)
Sales 15 915,8 13 944,1
Massdiscounters 4 196,1 3 965,6
Masswarehouse (note 10) 4 057,2 3 814,6
Massbuild (note 10) 1 934,7 675,3
Masscash 5 727,8 5 488,6
Trading profit before
interest and tax 777,1 574,9
As a % of sales 4,9 4,1
Massdiscounters 351,9 299,8
Masswarehouse (note 10) 167,6 107,5
Massbuild (note 10) 146,2 73,2
Masscash 111,4 94,4
Trading profit before tax* 800,9 577,3
As a % of sales 5,0 4,1
Massdiscounters 360,1 297,6
Masswarehouse (note 10) 178,4 110,9
Massbuild (note 10) 147,5 74,7
Masscash 114,9 94,1
Year
ended
June
2005
Restated
for IFRS
Rm % change (Reviewed)
Sales 14,1 26 673,8
Massdiscounters 5,8 7 396,6
Masswarehouse (note 10) 6,4 7 178,8
Massbuild (note 10) 186,5 1 509,5
Masscash 4,4 10 588,9
Trading profit before
interest and tax 35,2 998,1
As a % of sales 3,7
Massdiscounters 17,4 484,0
Masswarehouse (note 10) 55,9 173,6
Massbuild (note 10) 99,7 144,4
Masscash 18,0 196,1
Trading profit before tax* 38,7 976,1
As a % of sales 3,7
Massdiscounters 21,0 465,8
Masswarehouse (note 10) 60,9 181,3
Massbuild (note 10) 97,5 145,5
Masscash 22,1 183,5
* Trading profit before tax is after net chain interest income but before
corporate interest paid of R42,1 million (2004: R9,4 million) and goodwill
impairment.
Massdiscounters - comprises retail general merchandise discounters Game (65
stores), which trades in South Africa, Namibia, Botswana, Zambia, Uganda,
Mozambique, Mauritius, and Nigeria, and Dion (11 stores), which trades in the
Gauteng province of South Africa. Divisional comparable store sales growth was
flat as a result of estimated deflation of 3,3%.
Despite a R13,8 million negative impact of foreign exchange movements, excellent
expense and working capital control enabled the division to grow trading profits
well ahead of sales growth. In the core categories of appliances, home
electronics and computers, sales growths substantially exceeded those reported
by competitors. With estimated annual sales of R300 million, four new Game
stores (including one in Nigeria and three new small format 2 800 m2 stores),
were opened during the period, adding 14 000 m2 to the division. The performance
and early profitability of the new format Game outlets is encouraging, prompting
their aggressive expansion into smaller peri-urban and rural catchment areas.
With a trading profit before tax return on sales of 8,6%, the division exceeded
its medium-term full-year target of 7% and its international benchmark of 7,4%.
Masswarehouse - comprises the 14-store Makro warehouse club trading in food,
general merchandise and liquor in South Africa and Zimbabwe. Divisional
comparable store sales grew 5,9% with estimated inflation of zero.
Innovative merchandising and new cardholder recruitment, underpinned by
excellent inventory and expense management, resulted in trading profit before
tax growth 60% up on the previous year, which was depressed by costs associated
with the opening of two new stores, both of which are performing ahead of
expectations. New accounting standards required the inclusion of the two
Zimbabwean outlets which had been deconsolidated in 2001 following restraints on
the repatriation of dividends and management fees. This inclusion, which is not
material to the division"s result, required the application of hyperinflationary
accounting standards. The Masswarehouse trading profit before tax return on
sales of 4,4% compares favourably with its medium-term full-year target of 4%
and its international benchmark of 5%.
Massbuild - comprises 64 outlets, trading in DIY, home improvement and builders
hardware, under the Builders Warehouse, Federated Timbers, Servistar and De La
Rey brands in the major metropolitan areas of South Africa. Divisional
comparable store sales grew 17,4% with estimated inflation of 2,4%.
The buoyant domestic property market and the consequent propensity of homeowners
to invest in construction and refurbishment provided a firm foundation for
Massmart"s foray into the home improvement market. The defining characteristics
of the companies comprising this division are their target market, product
categories and business model and they have accordingly been grouped into a
single new division. Massbuild"s strategic imperative is the growth of and
extraction of value from these companies through aggressive new store
development and the rationalisation of structures, systems, processes and
brands, without the loss of operating focus, customer loyalty and brand equity
which they traditionally enjoyed. The inclusion of Federated Timbers, Servistar
and De La Rey and the opening of one new Builders Warehouse outlet enabled the
division to register the highest levels of sales growth, comparable sales growth
and profit growth in the Group. Massbuild"s trading profit before tax return on
sales of 7,6% reflects pleasing progress towards its medium-term full-year
target of 8% and its international benchmark of 10%.
Masscash - comprises 60 CBW and eight Jumbo wholesale cash and carry outlets
trading in South Africa, Lesotho, Namibia, and Botswana, and voluntary buying
organisations Shield (serving 818 independent food outlets) and Furnex (serving
898 independent furniture and appliance outlets). Divisional comparable store
sales increased by 7,7% with inflation of 1,8% and member sales decreased by
12,0% with estimated inflation of zero.
With a slight increase in inflation and an improvement of sentiment in the
wholesale commodity food market, CBW produced an excellent result with profit
growth almost twice that of its double-digit sales growth. Jumbo produced a
satisfactory result given the investment in store development, professional
management structures and information technology necessary for the repositioning
of the chain.
The focus in Shield and Furnex remained on the preservation of assets and the
implementation of the processes and controls necessary to mitigate risk. This
approach continued to result in an improvement in the state of the debtors book
and a substantial decline in sales in Furnex. Given the potential conflict of
the roll-out of smaller Game stores with the customers of Furnex, the latter has
been disposed of with effect from 1 March 2006, subject to the approval of the
Competition authorities.
Masscash"s trading profit before tax return on sales of 2,0% compares with its
medium-term full-year target and its international benchmark of 3%.
Strategic overview and progress
The management of Massmart remains devoted to the strategy which has ensured the
Group"s progress for 18 years: aggressive organic and acquisitive growth; value-
adding collaboration between focused trading entities; and incentivisation for
alignment.
Medium-term performance is guided by our "Vision for Growth", a rolling three-
year internal financial target resulting from implementation of the above
strategies, given effect through specific plans and objectives for: continued
real sales growth from existing outlets; expansion into new categories and
formats; new outlets; the relocation, enlargement and refurbishment of selected
outlets, selected acquisitions that conform to Massmart"s strategic and
financial criteria and continued net margin growth. These activities will be
underpinned by the imperative to reduce operating expenses, leverage management
capabilities and facilitate shareholder understanding, by simplifying the
structures and processes of the Group.
The "Vision for Growth 2008" announced last August called for a number of
strategic, structural and operational performance improvements, as well as the
opening of 35 new stores, which would generate estimated sales of R3,2 billion
by June 2008. Excellent progress towards this objective was made during the
reporting period with eight new stores opened and one acquired with combined
estimated sales of R1,2 billion by 2008.
Shareholders" insight into the strategy, portfolio and performance of Massmart
will be enhanced by the new four division structure, which was implemented on 1
July 2005 and is presented here for the first time.
Acquisitions
In October 2005, the Competition Commission recommended the prohibition of
Massmart"s acquisition of 84,1% of Moresport for R403,8 million, first announced
on 26 April 2005. Massmart and the Competition Commission are currently placing
their cases before the Competition Tribunal, which is expected to deliver a
ruling before the end of March 2006. A decision on the previously announced
capital raising by way of a R500 million preference share issue, will be held in
abeyance until the conclusion of any and all regulatory processes related to
this transaction.
Massmart"s people
In its essence, retail is about dedicated people anticipating and serving the
needs of others. Because each of us is unique and changing, this is a difficult
task with an elusive formula. Although pursuit of the balance between the art
and science of retailing can be a stimulating lifelong task, the hours are long
and the work oftentimes arduous and intense.
We thank each of the 23 000 Massmart colleagues for their contribution to this
result and particularly for their efforts over the holiday season.
Prospects
The shift late last year towards a more benign outlook on inflation and interest
rates, and the recent announcement of a budget that will benefit both the
housing market and middle to lower income consumers, augurs well for Massmart.
These factors will sustain the general growth of retail sales, albeit at a
slightly lower rate. More specifically, they will benefit Massbuild, our home
improvement division, and Masscash, our commodity food business, which
wholesales to traders who retail commodity food to our poorest citizens. The
latter will be direct beneficiaries of the government"s R70 billion social
security grants and the skills development and job creation initiatives aimed at
reducing unemployment.
We are confident that in the year to June 2006, Massmart will produce earnings
per share growth ahead of sales growth and last year"s growth. The full year"s
earnings growth may however be lower than that of the first half.
For the 34 weeks to 19 February 2006, total sales grew 15,0%, sales before
acquisitions grew 7,5% and comparable store sales grew 4,7%, with profit growth
significantly ahead of sales growth and last year. As reported historically,
these sales growths exclude Makro Zimbabwe.
Distribution and dividend policy
Massmart"s dividend policy is to declare and pay an interim and final dividend
representing a two times dividend cover unless circumstances dictate otherwise.
Notice is hereby given that an interim dividend of 130 cents per share in
respect of the period ended 25 December 2005 has been declared payable to the
holders of ordinary shares recorded in the books of the company on Friday, 17
March 2006. The last day to trade cum-dividend will therefore be Friday, 10
March 2006 and Massmart shares will trade ex-dividend from Monday, 13 March
2006. Payment of the dividend will be made on Monday, 20 March 2006. Share
certificates may not be dematerialised or rematerialised between Monday, 13
March 2006 and Friday, 17 March 2006, both days inclusive.
On behalf of the Board
Mark J Lamberti Guy Hayward
Deputy Chairman and Chief Financial Officer
Chief Executive Officer
22 February 2006
INCOME STATEMENT
6 months 6 months Year ended
ended ended
December December June 2005
2005 2004
Restated Restated for
for IFRS IFRS
Rm (Reviewed) (Reviewed) % change (Reviewed)
Sales 15 915,8 13 944,1 14,1 26 673,8
Cost of sales (13 515,3) (11 940,9) 13,2 (23 012,5)
Gross profit 2 400,5 2 003,2 19,8 3 661,3
Expenses (1 623,4) (1 428,3) 13,7 (2 663,2)
Trading profit before 777,1 574,9 35,2 998,1
interest and tax
Goodwill impairment - (46,3) (72,4)
Net interest paid (18,3) (7,0) 161,4 (22,0)
Profit before tax 758,8 521,6 45,5 903,7
Taxation (233,6) (164,0) 42,4 (308,7)
Net profit for the period 525,2 357,6 46,9 595,0
Attributable to:
Minority interest 10,1 1,8 2,4
Equity holders of the 515,1 355,8 44,8 592,6
parent
525,2 357,6 595,0
Reconciliation of net
profit for the period to
headline earnings
Net profit for the period 515,1 355,8 592,6
attributable to equity
holders of the parent
Goodwill impairment - 46,3 72,4
(Profit)/loss on sale of (0,6) 0,5 (0,6)
fixed assets
Headline earnings 514,5 402,6 27,8 664,4
Basic EPS (cents) 258,5 179,0 44,4 297,8
Diluted basic EPS (cents) 250,0 172,8 44,7 287,6
Distribution/dividend
(cents):
- Interim 130,0 111,0 17,1 111,0
- Final - - 72,0
Headline EPS (cents) 258,2 202,5 27,5 333,9
Diluted headline EPS 249,8 195,5 27,8 322,4
(cents)
BALANCE SHEET
December December June 2005
2005 2004
Restated Restated for
for IFRS IFRS
Rm (Reviewed) (Reviewed) % change (Reviewed)
Assets
Non-current assets 2 865,7 2 025,5 2 733,3
Property, plant and 875,1 691,3 26,6 802,6
equipment
Goodwill and other 1 267,3 708,2 1 261,4
intangible assets
Investments and loans 316,9 239,0 275,1
Deferred tax 406,4 387,0 394,2
Current assets 7 861,6 6 906,2 5 370,0
Inventories 3 573,2 3 283,5 8,8 2 677,0
Accounts receivable and 2 294,5 2 108,3 1 851,1
prepayments
Cash and bank balances 1 993,9 1 514,4 841,9
Total 10 727,3 8 931,7 8 103,3
Equity and liabilities
Total equity 1 986,1 1 607,3 1 648,2
Equity attributable to 1 938,6 1 599,1 21,2 1 610,5
equity holders of the
parent
Minority interest 47,5 8,2 37,7
Non-current liabilities 1 158,4 759,3 744,5
Long-term liabilities - 548,0 166,5 140,0
interest-bearing
Other long-term 507,0 493,9 504,4
liabilities and
provisions
Deferred tax 103,4 98,9 100,1
Current liabilities 7 582,8 6 565,1 5 710,6
Accounts payable and 7 321,0 6 435,4 13,8 5 176,8
accruals
Bank overdraft and short- 261,8 129,7 533,8
term borrowings
Total 10 727,3 8 931,7 8 103,3
RECONCILIATION OF PREVIOUS SA GAAP TO IFRS
6 months Year ended
ended
December June 2005
2004
(Reviewed (Reviewed)
)
Rm Net profit for the
period
As previously reported 396,6 606,8
SA GAAP adjustments (21,6) -
IAS 17 Leases (note 2) (21,6) -
IFRS adjustments (19,2) (14,2)
IFRS 2 Share-based Payment (note 3) (7,7) (17,0)
IAS 21 The Effects of Changes in Foreign Exchange (10,4) 1,4
Rates (note 4)
IAS 27 Consolidated and Separate Financial (1,1) 1,4
Statements (note 5)
355,8 592,6
Year 6 months Year
ended ended ended
June 2004 December June 2005
2004
(Reviewed) (Reviewed) (Reviewed)
Rm Equity attributable to equity holders
of the parent
As previously reported 1 429,8 2 047,9 1 616,2
SA GAAP adjustments - (441,9) -
IAS 17 Leases (note 2) - (441,9) -
IFRS adjustments (3,4) (6,9) (5,7)
IFRS 2 Share-based Payment (note 3) - - -
IAS 21 The Effects of Changes in (10,5) (12,8) (9,5)
Foreign Exchange Rates (note 4)
IAS 27 Consolidated and Separate 7,1 5,9 3,8
Financial Statements (note 5)
1 426,4 1 599,1 1 610,5
CASH FLOW STATEMENT
6 months 6 months Year ended
ended ended
December December June 2005
2005 2004
Restated Restated
for IFRS for IFRS
Rm (Reviewed) (Reviewed) (Reviewed)
Cash inflow from trading 881,7 664,7 1 154,1
Working capital movement 739,5 490,2 92,9
Cash flow from operations 1 621,2 1 154,9 1 247,0
Taxation paid (213,4) (137,7) (337,6)
Net interest paid (18,2) (6,2) (22,0)
Investment income 45,5 10,4 35,2
Dividends paid and share premium (143,8) (195,2) (416,4)
distribution
Net replacement of fixed assets (72,4) (129,0) (256,0)
Investment in fixed assets (113,5) (150,1) (157,6)
Businesses acquired - (77,2) (685,0)
Other investing activities (95,8) (44,3) (11,8)
Net financing activities 465,3 15,0 (22,6)
Foreign exchange losses taken to (5,3) (4,1) 5,4
statement of changes in equity
Opening cash and cash equivalents 404,8 1 026,2 1 026,2
Closing cash and cash equivalents 1 874,4 1 462,7 404,8
STATEMENT OF CHANGES IN EQUITY
Balance as previously reported 1 616,2 1 429,8 1 429,8
IFRS adjustments (Refer to IFRS (5,7) (3,4) (3,4)
reconciliation)
Restated opening balance 1 610,5 1 426,4 1 426,4
Exchange differences (4,5) 6,7 (0,5)
Dividends paid and share premium (143,8) (195,2) (416,4)
distribution
Net profit for the period 515,1 355,8 592,6
Shares issued/converted 1,1 - 18,8
Net movement of treasury shares - 29,4 29,5
Share trust transactions (39,8) (24,0) (39,9)
Equity attributable to equity 1 938,6 1 599,1 1 610,5
holders of the parent
Minority interest 47,5 8,2 37,7
Total 1 986,1 1 607,3 1 648,2
ADDITIONAL INFORMATION
Net asset value per share (cents) 970,6 802,8 806,7
Ordinary shares (000s):
- In issue 199 741 199 191 199 641
- Weighted-average 199 293 198 803 199 010
- Diluted weighted-average 206 006 205 898 206 060
Trading profit before items below: 878,5 645,9 1 156,6
- Depreciation (101,4) (71,1) (158,5)
Trading profit before interest and 777,1 574,8 998,1
tax
Capital expenditure
- Authorised and committed 21,9 26,1 114,6
- Authorised not committed 225,1 154,7 230,5
Acquisition commitment (pending 480,0 - 480,0
Moresport acquisition)
Contingent liabilities - - 1,5
Operating lease commitments (2006 - 4 472,9 4 204,9 4 862,1
2022)
US dollar exchange rates - period 6,37 5,66 6,73
end
- average 6,55 6,19 6,21
Notes
1. The Group adopted International Financial Reporting Standards (IFRS) from 1
July 2005. Comparative results have been restated.
2. The results for December 2004 have been restated following the circular
7/2005 issued by SAICA on 2 August 2005, a clarification of the reinterpretation
of IAS 17 (Leases) for South African companies. This reinterpretation was taken
into account in compiling the June 2005 results.
3. In accordance with IFRS 2 (Share-based Payment), the Group has recognised an
expense in the income statement for share options granted to employees, with a
corresponding credit to equity, representing the fair value of outstanding
employee share options. The fair value at grant date is charged to profit or
loss over the relevant vesting periods, adjusted to reflect actual and expected
vesting levels. Fair value is determined using the Binomial model. The IFRS 1
(First-time Adoption of International Financial Reporting Standards) exemption
was elected, resulting in the inclusion of equity instruments granted after 7
November 2002 that vested after 1 January 2005 in the valuation.
4. IAS 21 (The Effects of Changes in Foreign Exchange Rates) introduced the
concept of "functional currency". This change primarily affected the accounting
for the African subsidiaries of Massdiscounters, where there was a
reclassification of certain foreign exchange gains and losses from the income
statement to the foreign currency translation reserve (FCTR) in the balance
sheet. The IFRS 1 exemption was elected, which had the effect of eliminating the
FCTR on the date of transition (1 July 2004).
5. IAS 27 (Consolidated and Separate Financial Statements) eliminated the option
of temporary control, where the entity was operating under severe long-term
restrictions that significantly impaired its ability to transfer funds to the
parent. As a result, Makro Zimbabwe has been consolidated retrospectively. All
these companies operate in a hyperinflationary environment, and thus the
principles of IAS 29 (Financial Reporting in Hyperinflationary Economics) have
been applied. The financial impact on net profit attributable to equity holders
of the parent for December 2005 is a profit of R0,4 million.
6. IAS 16 (Property, Plant and Equipment) requires the reassessment of an
asset"s useful life and residual value at each balance sheet date. Applying this
standard retrospectively has had no material adjustment on the Group"s results.
7. These financial statements have been prepared in accordance with IAS 34
(Interim Financial Reporting), using accounting policies that are in line with
IFRS and consistently applied to prior periods, except for the change in
definition for segmental reporting for which the comparatives have been
restated. Refer to note 10.
8. The net realised and unrealised foreign exchange translation losses deducted
from trading profit amounted to R16,8 million (2004: R27,8 million). Included in
exchange differences in the statement of changes in equity is a R6,8 million
unrealised loss on open forward exchange contracts which have been designated as
effective cash flow hedges.
9. The operating lease smoothing adjustment expensed in the period was R10,2
million after tax (2004: R21,5 million).
10. For segmental reporting purposes, Massbuild, comprising
Builders Warehouse, Federated Timbers, De La Rey and Servistar, has been
excluded from the Masswarehouse division. The Masswarehouse results on the
previous basis of reporting, would have been:
Dec 2005
Sales PBIT PBT
Masswarehouse 5 991,9 313,8 325,9
Dec 2004
Sales PBIT PBT
Masswarehouse 4 489,9 180,7 185,6
June 2005
Sales PBIT PBT
Masswarehouse 8 688,3 318,0 326,8
11. Furnex (a division of Masscash) has been sold since balance sheet date. The
effective date of sale will be 1 March 2006. The financial impact of the sale,
which is not material, will be accounted for in the second half of the financial
year, in accordance with IFRS 5 (Non-Current Assets Held for Sale and
Discontinued Operations).
12. Due to Christmas trading, Massmart"s earnings are weighted towards the six
months to December.
These results have been reviewed by auditors Deloitte & Touche and their
unqualified review opinion is available for inspection at the registered office.
Directorate: CS Seabrooke (Chairman), MJ Lamberti* (Chief Executive and Deputy
Chairman), MD Brand, ZL Combi, GRC Hayward*, JC Hodkinson**, P Langeni, IN
Matthews, P Maw, DNM Mokhobo, S Nothnagel*, GM Pattison*, MJ Rubin *
Executive ** United Kingdom
Registered office:
Massmart House, 16 Peltier Drive, Sunninghill Extension 6, 2191,
Company secretary: A Cimring,
Auditors: Deloitte & Touche
For more information: www.massmart.co.za
Date: 23/02/2006 07:00:21 AM Produced by the JSE SENS Department
