Latest news with #R7.9bn
TimesLIVE
6 days ago
- Business
- TimesLIVE
Pepkor plans 250 more stores by year-end as operating profit grows 13.3%
Pepkor, the owner of Pep, Tekkie Town and Bradlows furniture stores, plans to open between 250 and 300 new stores by the end of the year. The group recently announced a number of acquisitions including Legit, Style and Boardmans from Retailability. It also bought House & Home furniture from Shoprite. On Tuesday the company reported a 12.8% rise in revenue to R48.8bn for the six months to March, while operating profit grew by 13.3% to R5.8bn. Pepkor's traditional retail businesses delivered a strong trading performance, outperforming the market and expanding market share. The clothing and general merchandise segments, which includes Ackermans, reported a 9.5% increase in sales to R34.5bn. The furniture, appliances and electronics segment, which also includes HiFi Corp and Incredible, reported a 9.1% rise in sales to R6.5bn. Pepkor also provides loans, store credit and leasing of cellphones. The segment — fintech — reported revenue growth of 34.5% to R7.9bn. The company said it sold 6.8-million cellphones, up 17%, during the six months to March. Eight out of 10 prepaid handset sales in South Africa are sold by Pepkor companies. 'Combined with the group's expansive store network as a powerful distribution channel, Pepkor has cemented its position as the clear leader in the cellular market, backed by a differentiated and highly resilient strategy,' it said. FoneYam, the cellular handset rental product launched last year and designed to make smartphones affordable for customers, continued to grow strongly with active customers reaching 1.5-million by the end of March. Monthly activations averaged 165,000 over the period, said Pepkor. CEO Pieter Erasmus said: 'We have delivered consistent retail performance, strategically executed on our fintech growth ambitions and maintained disciplined cost management. Our focus on digital and financial inclusion yields tangible benefits for our customers and the group's performance.' Erasmus said the company was particularly pleased with the progress in its fintech segment and its expanding cellular market share, which are becoming increasingly significant contributors to its overall success. 'Strategic acquisitions announced will further diversify our offering into new customer segments and product categories — positioning Pepkor for sustained growth and value creation.'
IOL News
24-04-2025
- Business
- IOL News
eThekwini faces R35bn consumer debt crisis
This restrictive measure unfairly targets paying customers, while ignoring the root cause of the water supply issue water loss has been highlighted as a contributing factor in Consumer debt in eThekwini A RECENT report detailing the state of consumer debt in the eThekwini Municipality has sparked concerns that ratepayers are deeply overstretched and unable to pay their municipal bills– and could fall even further behind with the new tariffs coming into effect in July. The report from the finance committee for this month shows that consumer debt in the city now stands at a staggering R35 billion, with a large portion of this debt being more than 30 days old. It added that the debtors'book grew significantly by R7.9bn compared to January 2024. Household debt makes up the bulk of the debt at R26bn, contributing to 75% of the total debtors. 'This reflects a growing number of households struggling to pay their municipal bills,' said the report. Commercial debt, which includes business accounts, amounts to R6.7bn. The municipal debt has continued to skyrocket despite interventions made, including offering indebted customers the opportunity to participate in debt relief programmes. The rising debt has raised concerns among ratepayers and councillors in the city. Action SA councillor Zwakele Mncwango expressed serious concerns regarding the municipality's financial situation. 'The picture has been like this for a while – since last year, the debt has been growing, and that is pointing to a serious problem. The main issue here is that the city identifies the problem but then does nothing to fix it. 'For instance, they say that people cannot afford to pay, but nothing is done to create a stable economic environment. More tariffs are being passed that burden those who already cannot afford to pay.' Mncwango suggested that those in debt could be offered a deal to pay at least half of what they owed, rather than the council losing everything. 'Going after those people legally is also an expensive process with no guarantee that they will pay in the end.' DA councillor Mxolisi Khubisa said at R35bn, the size of the debt posed a serious challenge, and the city leadership must take responsibility for it. 'One of the most alarming statistics highlighted is the city's water loss rate, which is significantly above the acceptable rate of 15-30%, currently sitting at 57.82%. The DA is demanding that the city manager be held accountable for these massive losses, which ultimately burden ratepayers. 'The DA calls on eThekwini's leadership to take urgent action to rectify these issues. The city must focus on addressing its billing problems, reducing water losses and ensuring fair and transparent tariff structures. Moreover, a thorough audit of the city's spending and a reduction of wasteful expenditures are essential to restore public confidence and support service delivery improvements,' Khubisa said. Ish Prahladh, president of the eThekwini Ratepayers and Residents Association, said on Tuesday they had attended a meeting to discuss tariffs and that residents are struggling. 'This (new tariffs) is going to cripple the ratepayers and residents' businesses, especially considering we have a 35% unemployment rate. There are many other avenues to bring in money. We should start with a 5% deposit instead of a 36-month repayment plan; consider extending it to 60 months. 'Additionally, all non-productive buildings should be sold, and Moses Mabhida Stadium should be utilised for other sporting activities without requiring millions in renovations when it is essentially a white elephant.' Mayoral spokesperson Mluleki Mntungwa acknowledged that the outstanding escalating debt and the high rate of non-revenue water are key concerns. He said the City had already initiated targeted interventions to collect outstanding amounts and invest in water infrastructure. Mntungwa outlined the interventions being implemented to collect outstanding amounts, which include: *Implementation of the high bill strategy. *Implementation of the meter- reading strategy. *Implementation of the debt reduction strategy. *Review of management of the indigent policy. * Improvement of indigent management processes. * Utilisation of external debt col-lectors * Implementation of the credit control and debt collection policy (including disconnection of services for non-payment). *Introduction of special debt relief programmes to assist debtors in financial distress and encourage those who can afford to pay. Mntungwa addressed the issue of tariff increases, saying they were subject to rigorous public consultation and National Treasury guidelines, while bulk tariff increases were imposed on municipalities. 'These increases are necessary for maintaining and expanding critical infrastructure in the face of rising costs and urban expansion. Tariff structures, as part of the trading services reforms, will be reviewed to ensure that they are cost reflective,' Mntungwa said. THE MERCURY
Yahoo
06-03-2025
- Business
- Yahoo
Harmony Gold sees 33% increase in net profit and strong cash flow
South Africa's largest gold mining operator, Harmony Gold Mining Company, has reported a 33% increase in net profit to R7.9bn in the six months ended 31 December 2024 (H1 FY25). The company's balance sheet has strengthened, with a net cash position of R7.3bn. This financial growth is underpinned by a 19% rise in group gold revenue, which soared to R35.4bn from R29.7bn in the previous period. Total operating free cash flow increased by 46% to R10.4bn in H1 FY25. Earnings per share (EPS) also saw a 32% increase, reaching 1,265 SA cents per share ($0.71), up from a comparative EPS of 956 SA cents per share. Shareholders have benefitted from a record interim dividend of 227 SA cents per share, and R1.4bn has been returned to them in H1 FY 2025. The company reported a 4% decrease in total gold production, aligning with the company's plans. Furthermore, a 2% increase in underground recovered grades to 6.40 grams per tonne was reported. Harmony Gold is also exploring copper optionality, with CEO Beyers Nel expressing eagerness to bring value to shareholders through the Wafi-Golpu project in Papua New Guinea, reported Mining Weekly. Negotiations for the special mining lease at Wafi-Golpu continue, with the project pipeline designed to avoid financial strain on the balance sheet. Nel said: 'While we have historically been a gold producer, we are on the cusp of introducing near-term copper, which will further de-risk and diversify our production profile. 'Harmony continues to generate stellar cash flows, and our balance sheet is robust, flexible and in a significant net cash position. The gold price has continued to rally since the beginning of the 2025 calendar year, enhancing our strong financial position.' Harmony Gold is also progressing with the Eva Copper feasibility study in Queensland, Australia, with production forecast to reach up to 60,000 tonnes of copper annually. The company is expecting to start copper production from its Eva Copper project by 2028. Nel also highlighted the company's growth trajectory, with more than R2bn directed towards high-grade underground gold mining projects and more than R1bn towards high-margin surface operation projects. These investments are expected to extend the life of major mines such as Moab Khotsong and Mponeng to at least 20 years. "Harmony Gold sees 33% increase in net profit and strong cash flow" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
