PICK N PAY has decided to forfeit a final dividend of 173.06 cents in order to preserve cash as a result of the upheaval caused by the Coronavirus pandemic. Thobile Mathonsi African News Agency (ANA)

DURBAN - Pick n Pay shares tumbled more than 14percent on the JSE yesterday after the retailer slammed the brakes on dividends following an 11.5percent fall in profits during the 52 weeks to the end of March 1.
Pick * Pay said its profit after tax fell to R1.91billion, despite a 15.2percent increase in South Africa to R1.78bn.

The retailer said its turnover increased 3.5percent to R89.3bn, and headline earnings per share advanced 2.6percent to 287.89cents. However, the group said its earnings per share plunged 11.7percent to 250.90c.

Chairperson Gareth Ackerman said the group decided to forfeit a final dividend of 173.06c in order to preserve cash, as a result of the upheaval caused by the Coronavirus outbreak. Ackerman said the pandemic was a massive shock to the economy, just when the country thought it had hit rock bottom.

He said the group needed to make the right decisions now to safeguard its future.

Article Source: https://www.iol.co.za/business-report/companies/pick-n-pay-halts-dividend-after-profits-decline-47878831