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Audited annual financial results for the 53 weeks ended 02 March 2025
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")
AUDITED ANNUAL FINANCIAL RESULTS FOR THE 53 WEEKS ENDED 02 MARCH 2025
53 weeks to 52 weeks to
Key Group financial indicators 02 March 2025 25 February 2024 % improvement/
FY25 FY24* (decline)
Turnover R118.6 billion R112.3 billion 5.6
Turnover (Pro forma 52w)1 R115.9 billion R112.3 billion 3.2
Gross profit margin 18.4% 18.1%
Trading expenses R23.0 billion R22.5 billion (1.9)
Trading profit R1 759 million R405 million 334.3
Trading profit margin 1.5% 0.4%
Loss before tax and capital items -R237 million -R1 421 million 83.3
Attributable loss after tax -R736 million -R3 301 million 77.7
Basic loss per share (EPS) -111.01 cents -581.85 cents 80.9
Headline loss per share (HEPS) -61.54 cents -172.21 cents 64.3
* In line with IAS 33, FY24 EPS and HEPS was restated to reflect the bonus element from the rights issue, reflecting adjustments to the weighted
average shares in issue (refer to note 34.1). In addition, FY24 earnings have been restated to correct an error in the application of IFRS 16 leases (refer to note 38).
1 Refer to Appendix 1 Pro forma financial information
FY25 Group Highlights
FY25 marked a turning point for the Group as the Pick n Pay segment executed the initial leg of its operational and financial recovery. Achievements of note
during the period include:
- Recapitalisation completed: the Group raised gross proceeds of R12.5 billion via the R4 billion rights offer and R8.5 billion through the Boxer JSE listing,
and closed the year with net cash resources of R4.2 billion2;
- Boxer value unlocked: Boxer's c.R30 billion market capitalisation demonstrates the exceptional quality of one of the Group's key assets;
- Pick n Pay company-owned supermarkets like-for-like sales revival: PnP company-owned supermarkets grew FY25 like-for-like turnover at 3.3% (52/52w basis), a
turnaround from FY24's 1.2% decline;
- Pick n Pay segment profit recovery: The Pick n Pay segment reduced its FY25 trading loss to R549 million from R1.5 billion in FY24, and returned to a
trading profit in H2 FY25.
Group result summary
The Group delivered a much-improved FY25 result, with a loss before tax and capital items of R237 million vs. a loss of R1.4 billion in FY24. The recovery
was driven by a R1.0 billion year-on-year reduction in the Pick n Pay segment trading loss, supported by a 27.3% net interest paid reduction as the
recapitalisation made its initial impact on debt service costs.
Group turnover increased 5.6%, with 13.2% growth from Boxer and 1.9% growth from the Pick n Pay segment. Gross profit margin expanded 0.3% to 18.4%, with
gross profit in Rand terms increasing 7.3% year-on-year. Other income grew 11.6%. Trading expenses increased by just 1.9%, due to a flat Occupancy charge
(+1.5% year-on-year) and a sharp reduction in the expected credit loss allowance. Group trading profit of R1.8 billion reflected a R2.3 billion Boxer
trading profit and a R549 million Pick n Pay trading loss.
Group net finance costs decreased 2.1% as the benefit from reduced bank interest expense was offset by increased IFRS 16 lease interest resulting from the
Boxer store rollout and distribution network expansion. This led to a Group loss before tax and capital items of R237 million, a substantial improvement
from FY24's R1.4 billion loss. In addition, the Group recorded a R294 million non cash asset impairment (vs. a R3.0 billion impairment in FY24). As a
consequence of the Boxer IPO, the Group reported a non-controlling or minority interest for the first time, at R85 million, which resulted in a Group FY25
attributable loss of R736 million (R3.3 billion in FY24).
The Group reports on the retail calendar of trading weeks, by which each financial year is an exact 52-week period of trading weeks from Monday to Sunday.
The result is the loss of a day per financial year. These lost days are taken into account by reporting a 53-week financial year approximately every six
years. In line with this methodology, FY25 is a 53-week year. In order to facilitate comparison with FY24 on a 52/52-week basis, the Group has provided pro
forma turnover2, which strips out the impact of the additional week. The Group has elected not to provide pro forma trading profit, as the impact of the 53rd
week is immaterial in the context of the Group as a whole.
On a pro-forma 52/52-week basis, Group FY25 turnover grew 3.2%, driven by a 0.3% Pick n Pay decline and 10.4% Boxer growth. On this basis, Pick n Pay's
South Africa sales were flat (-0.1% year on year), while Pick n Pay's Rest of Africa sales declined 5.7%.
Group strategic plan and outlook
FY25 was a critical year in the Group's recovery. The recapitalisation was completed in November 2024 and the Pick n Pay segment delivered a two-thirds
year-on-year trading loss reduction. Having strengthened the balance sheet, the Group is now focussed on the further operational recovery of Pick n Pay,
with Boxer continuing to execute on its growth strategy.
Within the Pick n Pay business, crucial milestones were achieved in FY25, including beginning the like-for-like sales recovery, closing or converting 40
loss-making SA supermarkets, and reversing a portion of FY24's gross profit margin contraction during the second half of the year.
While much has been achieved, the challenge to return Pick n Pay to a profitable and future-fit business remains very real. Despite the FY25 trading loss
reduction, the Pick n Pay segment still produced a material loss, especially when taking lease interest expense into account.
The path back to break-even, profitability and ultimately long-term sustainable success is clear; and will be executed on in a considered and methodical
manner. However, it will take longer than initially envisaged, as the chosen strategy is to build retail muscle memory for long-term success.
As a consequence, where the Group previously guided that it anticipated the Pick n Pay segment to break-even on a trading profit-after-lease-interest basis
in FY27, the Group now expects an FY28 break-even.
In order to ensure stability of management and singularity of purpose at this critical time in the turnaround, CEO Sean Summers has agreed to extend his
tenure to May 2028. Sean Summers said, 'the ultimate success of my tenure will be judged in 5- and 10-years' time, as today's efforts to rebuild retail
capacity and excellence bear fruit'.
Despite the challenges, the Group has absolute determination to achieve the Pick n Pay turnaround. The Group anticipates further profit recovery within the
Pick n Pay segment over the next two financial years, driven by further operational progress as well as the substantial FY25 debt service charge becoming
net interest income in FY26.
In the 8 weeks post period-end, the Pick n Pay segment's South African turnover grew 0.8%, with like for-like sales +3.8%. Company owned supermarket like-for-
like sales growth strengthened further to +4.0%, while franchise continued its like-for-like sales recovery to +2.1%. Post-period turnover is stated on a
commercial basis, which compares turnover to the same calendar week in the preceding year.
Following the announcement that Gareth Ackerman will retire from his role as Chair of the board in August 2025, the board would like to thank Gareth for his
principled leadership over the past 15 years and looks forward to his continued contribution as a non independent non-executive director.
We thank all Boxer and Pick n Pay colleagues, and our valued franchise partners, for their commitment and dedication, as we strengthen and re-energise the
Group for a prosperous future.
Gareth Ackerman Sean Summers
Chair Chief Executive Officer
26 May 2025
2 Refer to the consolidated annual financial statements, Appendix 1 Pro forma financial information
ABOUT THIS ANNOUNCEMENT
This announcement is the responsibility of the directors. It is only a summary of the information contained in the consolidated annual financial statements
and does not contain full details. Any investment decision should be based on the consolidated annual financial statements, published and
available at: https://senspdf.jse.co.za/documents/2025/jse/isse/PIK/FY25AFS.pdf.
Ernst and Young Inc, the Group's independent auditor, has audited the consolidated annual financial statements of Pick n Pay Stores Limited from which this
announcement has been derived and has expressed an unmodified audit opinion on the consolidated annual financial statements. This announcement itself is not
audited and therefore the audit report does not cover this announcement.
The consolidated annual financial statements are available on the Pick n Pay Investor Relations website at: www.picknpayinvestor.co.za.
FORWARD LOOKING INFORMATION
This report 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.
PRO FORMA FINANCIAL INFORMATION
Certain financial information presented in this announcement and the consolidated annual financial statements, including the 52-week sales information
presented above, constitutes pro forma financial information in terms of the JSE Limited Listings Requirements. The pro forma financial information is the
responsibility of the Board of Directors and is presented for illustrative purposes only. Because of its nature, the pro forma financial information may not
fairly present the Group's financial position, changes in equity, results of operations or cash flows. The reported amounts and adjustments are extracted
without adjustment, from the audited financial statements or underlying accounting records of Pick n Pay for the periods ended 25 February 2024 and 2 March
2025, respectively.
An assurance report (in terms of ISAE 3420: Assurance Engagements to Report on the Compilation of Pro Forma Financial Information) has been issued by the
Group's auditors in respect of the compilation of the pro forma financial information included in this announcement. The pro forma financial information
should be read in conjunction with this assurance report.
RESULT WEBCAST
The Group will hold an in-person and online results presentation at 8:30am this morning. All interested stakeholders are invited to watch the webcast which
can be accessed using the following link: www.corpcam.com/pnp26052025. The slides accompanying the result 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 and owns a 49%
share of a Zimbabwean supermarket business, TM Supermarkets. 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)
Non-executive directors
Gareth Ackerman (Chairman), Suzanne Ackerman, Jonathan Ackerman
Independent non-executive directors
Haroon Bhorat, James Formby, David Friedland, Aboubakar Jakoet, Audrey Mothupi, Annamarie van der Merwe
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: 26-05-2025 07:05:00
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