Larry Claasen
Industrial Correspondent
THE rapid growth of retail group Edcon has led it to build a new R55m distribution and warehouse facility at the Aeroport Industrial Estate near Johannesburg International Airport.
Edcon property development manager Carlo Render said the group’s Edgardale facility at Crown Mines had run out of capacity.
This saw the need for the construction of the new 22000m² distribution and warehouse facility.
The new warehouse was developed by industrial property group Improvon and Edcon moved in at the end of last year.
Edcon’s revenue for the half year to September was up 31% at R6bn. Trading profit rose 111% to R598,8m and attributable earnings increased 101% to R449,2m. This follows revenue rising 32% to R4,59bn and attributable profit rising 40% to R229,3m in the half year to September 2003.
The group’s Jet and Edgars chains were the main drivers of the growth. Newly acquired chains - CNA, Jetmart and Boardmans - are expected to make a significant contribution to Edcon’s earnings growth over the next few years.
Publisher: Business Day
Source: Business Day
