JOHANNESBURG - South ​African discount retailer ⁠Pepkor on Tuesday reported a 10.3% rise in half-year ‌earnings, buoyed by acquisitions, growth in its core PEP clothing brand ​and demand for financial services.

The owner of PEP and Ackermans ​clothing brands ​posted headline earnings per share (HEPS) from continuing operations of 93.1 cents in the six months to March 31.

⁠Operating profit rose 9.4% to 6.3 billion rand ($386 million).

Group revenue increased 13.2% to 54.8 billion rand. Excluding acquisitions, revenue rose 8.5%.

Revenue in the clothing and general ​merchandise segment climbed ‌11.6% to ⁠39.2 billion ⁠rand, driven by PEP and Brazilian clothing chains, as well as the ​inclusion of the recently acquired Legit, Swagga ‌and Style fashion businesses.

Revenue ⁠in furniture, appliances and electronics rose 14.4% to 7.8 billion rand, while financial services revenue jumped 41.6%.

Gross profit margin expanded by 170 basis points to 40.8%.

March performance again benefited from early withdrawals from retirement savings, albeit to a lesser extent than in the comparable period, and from shifts in the timing of Easter ‌and school holidays, Pepkor said.

Trading conditions are expected ⁠to remain challenging in the short term, ​with like-for-like sales growth of 3.7% in the first eight weeks after March, against a high base of 10.8% ​a year earlier, ‌CEO Pieter Erasmus said.

($1 = 16.3336 rand) (