UPBEAT OUTLOOK
ANC's ray of hope may boost retailers' prospects
The outlook for consumer goods companies appears upbeat as a changing political landscape provides some impetus to a stuttering economy. A study by EY has found that consumer goods companies remain under pressure because of slow volume growth but that a recovery was on the horizon in the next half year. The EY analysis studied 13 listed consumer goods companies in SA with collective annual revenue of R170bn. The study found that while revenue, earnings before interest, tax, depreciation and amortisation and headline earnings had fallen in the past reporting cycle, it expected the next cycle to be "stronger". The consumer products and retail sector analyst at EY, Derek Engelbrecht, said anecdotal evidence suggested that retailers saw strong sales in November and December. The momentum would be carried into the coming period thanks to positive sentiment, which has slowly returned since the ANC’s elective conference in December. Volume and revenue growth remained under pressure because...
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