Wob­ble in Aus­tralia but rev­enue keeps coming

Financial Mail - Investors Monthly - - Analysis -

Busi­nesses deal­ing di­rectly with con­sumers have not had a great time of late. The slug­gish econ­omy has given the re­tail sec­tor an up­hill strug­gle and has even put the ever-ro­bust cell­phone op­er­a­tors un­der pres­sure.

Shoprite, for in­stance, saw a 7.2% rise (down from the 12% rise in the cor­re­spond­ing pe­riod) in turnover for the half year to end De­cem­ber for its SA-based su­per­mar­kets. There is a sim­i­lar story at MTN, whose SA rev­enue moved up only 3% for the year to De­cem­ber.

Ap­pli­ance maker and dis­trib­u­tor Nu-World Holdings noted in its re­sults for the half year to end Fe­bru­ary: “The slow­down in eco­nomic growth has seen an im­pact on con­sumers, as real gross na­tional in­come per capita has fallen since 2014. Both house­hold debt and debt ser­vic­ing costs have risen. Cur­rency volatil­ity and fur­ther de­pre­ci­a­tion con­tin­ued dur­ing the pe­riod un­der re­view.”

But de­spite the pres­sure on con­sumers they were not pre­pared to do with­out some of their elec­tronic nice-to-haves,

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