Massmart (MSM) Results Snapshot FY21

Diluted headline loss per share (continuing ops) widened to -454cps (LY: -384cps). Results were impacted by July unrest. Headline loss per share -11.7% y-y before unrest impact. Other challenges include supply chain disruption resulting in low stock, and group-wide strikes in Nov and Dec. Liquor sales lost due to restrictions amounted to R1.8bn, lost margin R193m. Turnover (cont. ops) flat at 0.1%. Game performed poorly with down -8.1% y-y). Builders grew +7.1% y-y, Wholesale +1.1% y-y. Continuing Ops GPM down 187bps to 18.7% due to promotions and unrest. Expenses to sales ratio stable at 18.8%. OPM drop from 2.1% to 1.1%. Impairment of R1.1bn relating to Game’s SAP system (R507m) and assets related to unrest (R231m). Unrest insurance proceeds R1.0bn. No dividend declared. Debt continues to grow, gross debt R6.5bn (LY: R5.8bn). Equity dropped from R2.9bn to R2.5bn