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Mon 1 Jun 2026
Close: 1 821c 
Day's move: -43c (-2.31%)
Volume: 2 876 769
Trades: 1 699
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Revenue for the period increased to R123.67 billion (R122.46 billion) while gross profit grew to R22.62 billion (R21.76 billion). Trading profit decreased to R1.69 billion (R1.76 billion). Loss for the period attributable to equity holders of the parent improved to R728 million (loss of R736 million). Furthermore, headline loss per share recovered to 52.58 cents per share (headline loss of 61.54 cents per share).
Dividends
In light of the Group’s capital position and ongoing recovery, dividend payments remained suspended during FY26 and no dividend was declared for the year. The Board will consider resuming shareholder distributions once it is satisfied that the Group’s cash generation is sufficiently strong, sustainable and supports a return to consistent profitability.
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/pnp25052026. 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.
Board changes
Lerena Olivier will step down as the Group’s CFO at the conclusion of the Company’s 2026 AGM in August 2026, in line with the Group’s long-term succession planning. It is intended that Tina will assume the role of Group CFO following the conclusion of the 2026 AGM.
Audrey Mothupi-Palmstierna will retire from the board at the 2026 AGM, to be held in August 2026.
Group strategic plan and outlook
FY26 saw an exceptional performance from Boxer. Against that, the Pick n Pay segment's increased trading loss indicates that the in-progress turnaround still has some way to go.
The loss of R2.0 billion at the trading profit after lease interest level in the Pick n Pay segment underpins the urgency of returning Pick n Pay to a sustainable enterprise. Notwithstanding the challenges, positive progress is being made in improving the customer experience, which is our lifeblood.
Critical elements of the Pick n Pay turnaround strategy have already been put in place, with the full benefits still to be realised. Initiatives including closing loss-making stores, strengthening store and regional management, and improving the product offer have driven a steady improvement in like-for-like sales coupled with a gross profit margin recovery. The new logistics contract is expected to drive further gross margin accretion in FY27 and FY28.
Astute management of trading expenses is a critical lever on the journey to achieving break-even at the trading level within the Pick n Pay segment. Employee costs are the Pick n Pay segment's largest expense (equating to 41.4% of FY26 trading expenses) and are out of kilter with the wider retail industry. Support office employee costs were targeted in FY26 (and continued to be addressed), with restructuring and a salary freeze. Post year end, Pick n Pay initiated a s.189A (of the Labour Relations Act) process with our bargaining unit store-based employees and labour partners with the express purpose of restructuring our labour model and bringing Pick n Pay's employee costs, practices and efficiencies in-line with the market. The outcome of this process, in combination with the other turnaround initiatives, is critical to Pick n Pay's ability to reach profit break-even, to create a sustainable business with secure futures for Pick n Pay employees.
Elevated oil and diesel prices mean that the trading outlook for FY27 is uncertain. The Group expects the war in the Persian Gulf to impact food inflation, logistical costs, and the ability of the consumer to spend. How these factors ultimately play out is unclear, and is largely predicated on the duration of the war.
Given the time it will take for the turnaround initiatives already in play to deliver their full benefits, and the challenges facing the South African retail market, the Group is pushing out its profit break-even target for the Pick n Pay segment by one year. The Group is now targeting the Pick n Pay segment to break even at the trading profit after lease interest level in FY29 (previously FY28). The delay reflects the phasing of the various elements of the turnaround plan, rather than any reduction in the Board's confidence that the turnaround objectives will ultimately be achieved.
In the 9 weeks post period-end, the Pick n Pay segment's South African supermarket like-for-like sales growth was slightly ahead of that achieved in FY26.
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| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
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