PICK N PAY STORES LIMITED - Trading statement

Trading statement

Pick n Pay Stores Limited
Incorporated in the Republic of South Africa
Registration number: 1968/008034/06
Share Code: PIK ISIN code: ZAE000005443
(“Pick n Pay” or “the Group”)

Trading statement

Shareholders are advised that Pick n Pay Stores Limited (“the Group”) is in the process of finalising
its 2019 financial results for the 53 weeks* ended 3 March 2019, which are expected to be
published on 26 April 2019.

The Group delivered turnover growth of 9.6% in the 53 weeks of the 2019 financial year. On a
comparable 52-week basis, turnover increased by 7.1%, with like-for-like turnover growth of
4.8%. With selling price deflation of 0.3% over the year, the Group achieved like-for-like volume
growth of 5.1%.

The Group’s core South Africa division delivered comparable turnover growth of 7.4%. Through
a combination of its Pick n Pay and Boxer brands, the Group demonstrated consistent market
share gains across the year. This achievement, in a very challenging trading environment,
underlines the effective and consistent execution of the Group’s long-term plan. Over the past
six years, a strong focus on improving cost and operational effectiveness has enabled the Group
to invest in a winning customer offer through lower prices, more attractive promotions, better
and more innovative products, compelling value-added services, and brighter and more modern
stores.

This trading performance was delivered despite a difficult consumer environment in South Africa,
and some challenges elsewhere, in particular a testing economy in Zambia, and currency
uncertainty and disruption in Zimbabwe. Notwithstanding this challenging background, the Group
expects to deliver on its goal of maintaining momentum on earnings growth alongside improved
turnover growth. The Group expects the results for the 2019 financial year, expressed as growth
on the prior period, to fall within the following ranges:



                                                                               Pro-forma*          Pro-forma*
                                        53 weeks to       53 weeks to         52 weeks to         52 weeks to      52 weeks to
                                      3 March 2019      3 March 2019     24 February 2019    24 February 2019      25 February
                                           Expected                              Expected                                  2018
                                      growth range     Expected range        growth range     Expected range       Prior period
                                     on prior period   cents per share     on prior period    cents per share   cents per share

HEPS will increase between                20% - 30%    332.38 - 360.07          13% - 23%     312.99 - 340.69           276.98

Diluted HEPS will increase between        20% - 30%    325.93 - 353.09          13% - 23%     306.92 - 334.08           271.61

Basic EPS will increase between           20% - 30%    328.37 - 355.73          13% - 23%     309.21 - 336.58           273.64

Diluted basic EPS will increase           20% - 30%    322.00 - 348.83          13% - 23%     303.21 - 330.05           268.33
between

The Group has begun the 2020 financial year with great energy, confidence in its long-term plan
and its ability to compete effectively and deliver further improvements to win more customers in
a tough market.

The financial information on which this trading statement is based has not been reviewed by or
reported on by the Group’s external auditors.



By order of the Board

Cape Town
8 April 2019                                             Sponsor: Investec Bank Limited


*
 The Group follows a 52-week retail financial calendar, which requires the inclusion of an additional
week every six years. The 2019 financial year is a 53-week period, and as such, the results are not
directly comparable with 2018. The Group provides additional pro-forma financial information on an
equivalent 52-week basis, to assist stakeholders with their assessment of its comparable performance.
The pro-forma financial information has been prepared in accordance with International Financial
Reporting Standards, is the responsibility of the directors, has been provided for illustrative purposes
only and, because of its nature, may not fairly represent the financial performance of the Group.

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