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Fri 13 Jun 2025
Close: 2 433c 
Day's move: -66c (-2.64%)
Volume: 4 585 548
Trades: 3 464
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Turnover for the year rose to R118.6 billion (2024: R112.3 billion) whilst trading profit shot up to R1.8 billion (2024: R405 million). Loss for the period attributable to equity holders of the parent improved to R736 million (2024: loss of R3.3 billion). Additionally, headline loss per share came to 61.54 cps (2024: 172.21 cps).
Shareholder distribution
Owing to the loss incurred for the year, the Board has not declared an FY25 dividend. While the Group is now well capitalised following the successful completion of the two-step recapitalisation plan, the Group does not expect to declare any dividends until it has returned to sustainable profitability.
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.
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| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
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