Massmart The numbers game
In one of those happy bits of mathematics that roll around every other results season or so, Massmart’s year-on-year revenue growth turns out to be more or less exactly ten times that of Walmart’s revenue growth back home, give or take and speaking percentagally. 15.5%, to be precise, compared with 1.5%. Although adjusted for currency and billions of dollars, it’s a very different picture, obviously. But it does go some way to explaining Walmart’s interest in the African market. More about those numbers: Sales R61.2billion and climbing, with like store sales up 9.6%. Massdiscounters up 11%, Massbuild up 13%, Masscash up 16.5% and Makro really really up at 20.1%. Masscash, housing as it does the crucial Cambridge acquisition, is the one to watch as it is at the vanguard of Massmart’s stated desire to build a R20billion food business in five years. If it’s the full results you’re after, bide your time until 22 August, when Mr Pattison will deliver them in suitably measured tones.
Comment: But so far, an excellent set of indicators, which would seem to indicate that the Walmart experiment, paired with Massmart’s superb fundamentals, is working.