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Five things making headlines in South Africa today

MPC’s interest rate decision, Mr Price and Tiger Brands results, Mattress Firm emerges from bankruptcy, PIC CEO offers to resign.
MPC to announce the interest rate decision on Thursday. Picture: Dean Hutton, Bloomberg

Here’s what caught our attention on Thursday:

1. MPC to announce interest rate decision

 The South African Reserve Bank’s Monetary Policy Committee will on Thursday announce their interest rate decision for the final few months of 2018. The Sarb has repeatedly said that it seeks to see inflation lean closer to the midpoint of its 3% and 6% target range. The rand gained to below the R14 mark on Thursday, sitting at R13.95 at 8:02 ahead of the announcement.

Update to follow.

2. Mr Price results

Consumers don’t put their fashion needs second to the tough economic environment. Mr Price Group’s financial results for the 26 weeks ended September 29, 2018 shows that headline earnings per share increased by 11.6% to 494.3 cents, while diluted headline earnings per share increased by 11.1% to 482.4 cents. The CEO, Mark Blair says sales growth during the period was ahead of the market. Total revenue increased by 7.8% to R10.5 billion supported by retail sales growth of 6.6%. A dividend of 311.4 cents per share has been declared by the board.

3. Tiger Brands results

Against the backdrop of a recession and the wounding from the listeriosis outbreak earlier this year, Tiger Brands  is reporting a 26% decrease in headline earnings per share to 1 587 cents, and a revenue decrease of 9% to R28.5 billion. The group’s operating margin from continuing operations declined by 310 basis points to 11.7%. Tiger Brands also announced its decision to spin off its $350 million stake in seafood company, Oceana. The dividend is unchanged at 1 080 cents per share.

4. Steinhoff’s mattress firm clears bankruptcy

Steinhoff’s route to recovery is underway, first with the appointment of new CEO Louis du Preez and now the announcement that its US-based unit, Mattress Firm, has emerged from bankruptcy after successfully completing a reorganisation in accordance to the approved Chapter 11 plan. According to a statement, Mattress Firm emerged with access to $525 million in exit financing and successfully exited around 660 underperforming stores.

5. PIC CEO offers to resign

Daniel Matjila, the current CEO of the Public Investments Corporation has offered to resign. The announcement was made on Wednesday afternoon. Before resigning, the offer must be considered by both the PIC board and finance minister, Tito Mboweni. Matjila recently faced calls to resign after he allegedly used funds for personal use.

Read: PIC CEO offers to resign

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