Johannesburg – Retail company Massmart has recorded a net loss of R1.753-billion, citing lockdown restrictions and retrenchment costs.
In 2019, the company reported a loss of R1.3billion for the same period.
On Monday, Massmart announced that its total sales of R86.5billion for the 52-weeks ending in December last year represented a decline of 7.7% decline in comparable-store sales.
The wholesaler, which is owned by multinational grocer, Walmart, estimates that the coronavirus pandemic cost the company R6.1billion in lost sales last year. it said it was battling to turn around some of its unprofitable businesses.
The report said lockdown restrictions weighed heavily on the company’s ability to sell certain products such as alcohol and tobacco as the sale of the items was prohibited.
The headline loss for the period is R0.9billion compared to a headline loss of R1.2billion during the period of 2019.
Massmart said fluctuations in the rest of Africa currencies continued to negatively impact the group, especially regarding foreign-denominated leases and payables. “These contributed to the foreign exchange loss of R381.1 million.”
The company comprises of two business units operating 423 stores, in 13 sub-Saharan countries.
