Wrap Text
Condensed consolidated interim financial results for the 26 weeks ended 31 August 2025 ("H1 FY26")
Pick n Pay Stores Limited
Incorporated in the Republic of South Africa
Registration number: 1968/008034/06
ISIN: ZAE000005443
JSE and A2X share code: PIK
("Pick n Pay" or "the Group")
CONDENSED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE 26 WEEKS ENDED 31 AUGUST 2025 ("H1 FY26")
26 weeks to 26 weeks to
Key Group financial indicators 31 August 2025 25 August 2024
H1 FY26 H1 FY25 % improvement
Turnover R58.8 billion R56.1 billion 4.9
Trading profit R310 million R83 million 273.5
Trading profit margin 0.5% 0.1%
Loss before tax and capital items (R317 million) (R1 052 million) 69.9
Headline loss (R439 million) (R803 million) 45.3
Headline loss per share (HEPS) (59.77 cents) (136.60 cents) 56.2
Basic loss per share (EPS) (67.53 cents) (140.83 cents) 52.0
H1 FY26 Group Highlights
H1 FY26 saw the Group's return to a full execution focus, following the completion of the recapitalisation in November 2024. Achievements during the period
include:
- Further Pick n Pay SA Supermarkets like-for-like sales acceleration: like-for-like sales momentum increased to 4.8% for company-owned supermarkets and 1.7%
for franchise supermarkets as customers increasingly turned to Pick n Pay as their supermarket of choice;
- Pick n Pay segment gross profit margin recovery: Pick n Pay gross profit margin improved by 0.4%, demonstrating that the like-for-like sales growth was
driven by a considerably strengthened customer offer;
- Another strong performance from Boxer: Boxer's market leading 13.9% turnover growth (5.3% like-for-like) is testament to its position as South Africa's
leading grocery discounter;
- Group profit recovery: The Group reduced its interim headline loss by 45.3% to R439 million.
Group results summary
H1 FY26 saw the Group successfully execute on multiple of its strategic initiatives, while also delivering a meaningful improvement towards profitability.
The Group delivered a 45.3% headline loss reduction to R439 million, vs. a loss of R803 million in H1 FY25. The improved result was driven by a R227 million
trading profit increase, in conjunction with a R537 million positive net funding interest swing, as the full benefit of the FY25 recapitalisation was
realised in Group earnings.
Group turnover increased 4.9%, with 13.9% growth from Boxer and 0.1% growth (4.4% like-for-like) from the Pick n Pay segment. Gross profit margin expanded
0.3% to 18.2%, driven by a recovery in the Pick n Pay segment gross profit margin. Other income grew 4.5%. Trading expenses increased by 4.8%, driven by the
Boxer store rollout. Group trading profit improved by 273.5% year-on-year to R310 million, reflecting a R931 million Boxer trading profit (+16.2%) and a
R621 million Pick n Pay trading loss (13.5% improvement).
Group net finance costs decreased 44.8% to R627 million, reflecting the net impact of the positive funding interest swing and a 3.9% increase in net lease
interest, where Boxer's relatively high lease interest growth, driven by the store rollout, was offset by a reduction in Pick n Pay.
The Group loss before tax and capital items reduced 69.9% to R317 million, vs. a loss of R1.1 billion in H1 FY25. After accounting for capital items and the
34.4% Boxer non-controlling interest, the attributable loss after tax recovered 40% to a loss of R496 million from a loss of R827 million in H1 FY25.
Group strategic plan and outlook
H1 FY26 saw steady progress in the Group's profit recovery. Boxer's strong H1 FY26 performance was the result of outstanding operational execution, and
Boxer will continue to drive its store rollout as it captures its substantial long-term structural growth opportunity.
Within Pick n Pay, much has been achieved. Accelerated like-for-like sales growth shows that customers are once again choosing Pick n Pay, and the gross
profit margin recovery demonstrates that this is a sustainable recovery. The project to exit unprofitable stores has been successfully executed, with 65
loss-making, company-owned supermarkets expected to have been closed or converted by the end of FY26. This, taken together with stores that have become
profitable, or have good prospects of becoming so, means that this leg of the strategic plan will largely be concluded by the end of the financial year.
Pick n Pay Clothing opened its 400th stand-alone store as it expanded its reach and delivered further market share gains, with turnover growth of 12.0%
(7.5% like-for-like). Online sales recorded solid double-digit growth, underscoring the Group's growing competitiveness in the digital retail space.
However, Pick n Pay continues to be loss making at the trading profit level, with company owned supermarket like-for-like sales growth lagging slightly
behind like-for-like operating cost growth in the reporting period. The multi-year journey of returning Pick n Pay to a profitable and future fit business
continues to be tackled in a purposeful and methodical manner.
On a full-year FY26 basis, the Group expects the Pick n Pay segment trading loss to be broadly in line with FY25. This is because Pick n Pay continues to
invest in critical skills to rebuild retail excellence to facilitate the achievement of the trading profit after lease interest break even target.
In the 6 weeks post period-end, the Pick n Pay segment's South African supermarket like-for-like sales growth was approximately in line with that achieved
in H1 FY26.
We thank all Boxer and Pick n Pay colleagues, and our valued franchise partners, for their commitment and contribution as we rebuild and energise the Group
for a prosperous future.
James Formby Sean Summers
Chair Chief Executive Officer
27 October 2025
ABOUT THIS ANNOUNCEMENT
This announcement is the responsibility of the directors. It is only a summary of the information contained in the Group's interim H1 FY26 results and does
not contain full details. Any investment decision should be based on the full interim results published on the Group's website at www.picknpayinvestor.co.za
and on the JSE cloudlink at: https://senspdf.jse.co.za/documents/2025/jse/isse/PIK/PIKFY26H1.pdf
The information contained in this announcement has neither been audited nor reviewed by the Group's external auditors.
FORWARD LOOKING INFORMATION
This announcement contains certain forward-looking statements which relate to the possible future performance and financial position of the Group. All
forward-looking statements are solely based on the views and considerations of the directors. These statements involve risk and uncertainty as they relate
to events and depend on circumstances that may or may not occur in the future. The Group does not undertake to update or revise any of these forward-looking
statements publicly, whether to reflect new information, future events or otherwise. These forward-looking statements have not been reviewed or reported on
by the Group's external auditors.
RESULTS WEBCAST
The Group will hold an in-person and online results presentation at 8:30 this morning. All interested stakeholders are invited to watch the webcast, which
can be accessed using the following link: www.corpcam.com/pnp27102025. The slides accompanying the results presentation, which will include information on
the Group's strategy, will be available on the Pick n Pay Investor Relations website at www.picknpayinvestor.co.za shortly before the commencement of the
presentation. A playback of the webcast will be made available on our website approximately 2 hours after the presentation.
ABOUT PICK N PAY STORES LIMITED
The Pick n Pay Stores Limited Group is a leading South African grocery, clothing, liquor, and general merchandise retailer, employing 90 000 people through
its owned and franchise operations, across its Pick n Pay and Boxer banners. The Group is managed through its Pick n Pay and Boxer divisions.
For further information on Pick n Pay and its underlying businesses, please visit www.picknpayinvestor.co.za.
DIRECTORS OF PICK N PAY STORES LIMITED
Executive directors
Sean Summers (CEO), Lerena Olivier (CFO)
Independent non-executive directors
James Formby (Chair), Haroon Bhorat, Aboubakar Jakoet, Audrey Mothupi-Palmstierna, Annamarie van der Merwe, Pooven Viranna
Non-executive directors
Gareth Ackerman, Suzanne Ackerman, Jonathan Ackerman
CORPORATE INFORMATION
Registered office
101 Rosmead Avenue, Kenilworth, Cape Town 7708
Company Secretary
Vaughan Pierce
Email address: CompanySecretary@pnp.co.za
Investor relations
Stephen Carrott
Email address: StephenCarrott@pnp.co.za
Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
Transfer secretaries
Computershare Investor Services Proprietary Limited
Date: 27-10-2025 07:05:00
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