Boxer Retail (BOX) H1 2026 earnings summary

Executive summary

• Achieved strong results post-November 2024 IPO, with turnover up 13.9% to R22.5 billion and market share gains in a deflationary, competitive environment.

• Opened 25 new stores, reaching 547 total, and created over 2,300 new jobs with 2,100 internal promotions.

• Declared inaugural dividend of 45.30 cents per share, representing a 40% payout ratio of headline earnings per share.

• Launched Boxer Rewards Club, reaching 2.3 million members, and rolled out the Boxer Supplier Portal to drive customer loyalty and data monetization.

• Net cash position improved to R1.1 billion from net debt of R180 million at FY25 year-end.

Financial highlights

• Turnover reached R22.5 billion, up 13.9% year-over-year; like-for-like sales grew 5.3%.

• Trading profit was R931 million, up 15.1% at a stable 4.1% margin.

• EBITDA rose 13.7% to R1.61 billion; headline earnings increased 5.3% to R518 million.

• Net cash position of R1.1 billion at period end, compared to R180 million net debt in February 2025.

• Free cash flow after CapEx/share repurchases was R1.04 billion.

Outlook and guidance

• Strong trading momentum continued into the six weeks post-period end, with focus on Black Friday and festive season performance.

• Guidance to open 60 stores for the full year, with 35 targeted in H2; full-year capex projected at R1.1 billion.

• Additional costs expected from new Tongaat DC and annualizing IPO-related debt, causing short-term margin pressure.

• No major change in selling price inflation expected for H2; competitive pricing to continue.

• FY26 HEPS expected to decline year-on-year due to share dilution, but absolute headline earnings growth remains a focus.