ONLINE ANNUAL REPORT 2010

Welcome

Massmart is a South African-based globally competitive regional management group, invested in a portfolio of differentiated, complementary, focused wholesale and retail formats, each reliant on high volumes and operational excellence as the foundation of price leadership, in the distribution of mainly branded consumer goods for cash.

Massmart Annual Report 2010 Annual Report 2010

FINANCIAL HIGHLIGHTS

Operating profit before foreign exchange movements
2009: R2,029.0m

Total sales
2009: R43,128.7m

Chief Executive Officer's Review

Grant Pattison
Chief Executive Officer

After five years of a strong consumer economy in South Africa which boosted net operating margins, the 2010 financial year was the second consecutive year that Massmartís net operating margin declined. As the effects of the global economic crisis filtered through to the African economies, sales growths declined below expense inflation.