Inflation and rising interest rates in South Africa are two factors that Naspers has pointed to for a widening loss at e-retailer Takealot Group.
A loss of US$22-million (R408-million) translated into a -3% trading margin as consumer demand slowed, Naspers, which owns Takealot, said alongside its annual results for the year ended 31 March 2023, published on Tuesday.
Gross merchandising value (GMV) at Takealot Group rose by 13% and revenue by 12% in rand terms “despite tough market conditions”. A year ago, Takealot had grown GMV and revenue by 46% and 36% respectively compared to 2021 and declared a profit “near breakeven”.
Profits were already impacted by rising operational costs “due to persistent national rolling power blackouts, escalating fuel costs and the effect of global supply-chain constraints”.
Read: Naspers profit slumps
Aggressive pricing from offline retailers contributed to overall gross margin pressure, the group said.
Mr D, Takealot Group’s on-demand business, grew GMV by 8% (11% including groceries) and revenue by 17%, a “strong performance given the tough trading environment during the year”. – © 2023 NewsCentral Media