South African retailer Pick n Pay has reported that its Zimbabwean subsidiary recorded a R1.7 million for the half year to September 2020.

This was a major shift from a profit of R77.8 million prior year comparable.

Pick n Pay owns a 49% share of Zimbabwean supermarket chain, TM Supermarkets.

Meanwhile, the group said foreign currency losses reduced earnings by R58 million while inflation reduced earnings by another R48 million, which was impaired.

The giant retailer anticipates its profit for the six months period under review to fall by around 60% due to trading restrictions arising from the Covid-19 pandemic as well as one-off costs.

Reported headline earnings per share, the main profit measure in South Africa, for the 26-weeks to August 30 is expected to decline by between 36.61 cents and 45.64 cents from 91.28 cents in the 26-weeks ended September 1 2019.

Management said reduced trading hours, limits on the number of customers in stores and temporary store closures following positive Covid-19 cases among staff negatively impacted on sales during the half year.

Resultantly, group turnover rose marginally by 2.6%, with like-for-like growth of 1%. Liquor and tobacco sales fell 47.5%, while clothing sales decreased 4.2% in South Africa.

But core retail sales, which include food, groceries and general merchandise improved by 8.7%.